In today’s gold price forecast, I decided to share with you my insights from today’s Quick Gold Alert. Have a nice read!
How high can gold bulls go in the coming days?
Technical Picture of Gold
Looking at the daily chart, we see that running gold bulls broke above the level of $2,650 and closed Wednesday above the Nov.7 low. This positive development translated into another higher open and formed the fourth in a row pro-bullish gap ($2,651.70-$2,653.40) during Asian trading hours.
Additionally, thanks to yesterday’s price action gold futures broke above important resistance area, opening the way to higher prices.
What do I mean by that?
Let’s take a closer look at the 4-hour chart to find out.
From this perspective, we see that the futures verified the earlier breakout above the first resistance zone (created by the 50% Fibonacci retracement (based on the Nov.7-Nov.14 downward move), Nov.12 and 13 peaks and the previously broken mid-Sept. peak of $2,627.10), which triggered further improvement and a successful attack on the next resistance - the 61.8% Fibonacci retracement (based on the Nov.7-Nov.14 downward move marked with orange).
Thanks to the bulls’ action the price not only broke above it, but also climb above the red declining resistance line(based on the Oct.30 and Nov.5 peaks), opening the way to higher levels and next resistances.
So, how high can the bulls go?
Considering today’s increase slightly above the 50% Fibonacci retracement (based on the entire Oct.-Nov. downward move), it seems that the next target for the buyers could be the 78.6% Fibonacci retracement (based on the Nov.7-Nov.14 downward move and marked with orange) at around $2,680, which is the last stop before the next important resistance zone (marked with the red ellipse with 3) created by the previously broken barrier of $2,700, the 61.8% Fibonacci retracement (based on the entire Oct.-Nov. downward move and marked with red) and the red gap (2692.10-2694.80) from Nov.11.
Summing up, gold futures opened Thursday with the fourth in a row pro-growth gap, which together with the verification of the breakout above the first resistance zone (seen from the 4-hour perspective) increased the probability of further improvement and test of the next resistances in the coming day(s).
Have a profitable day and see you tomorrow.
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Anna Radomska