What started last week… just got louder earlier today, and gold approached an important barrier of 4300.
Where could the yellow metal go now?
Looking at the daily chart, we see that gold closed last week with a strong bullish candle that closed above both the red gap zone and our Friday upside target at 4250, opening the door further to the north.
The bullish sentiment held through the weekend, and today’s price action opened with a gap up (4254.90–4264.05), which now acts as the first support (which is more clearly seen on the H4 chart below).
In my opinion, as long as that gap holds, bulls have the upper hand and could push gold not only to the 4300 psychological level once again, but also to the upper border of the rising green channel (currently around 4330).
Daily oscillators remain supportive, but there’s a caveat… the USD Index slipped to the green support zone (discussed in Lab Note#11). If dollar bulls return with strength from this area a retest of the previously broken area around 4230–4250 should not surprise us.
Key Levels to Watch:
- 4330-4340 -> upper line of the green channel from H4
- 4255-4264 -> today’s green gap
- 4230-4250 -> previously broken resistance area
- 4200 -> psychologically important level
- 4172-4182 -> support area created by the recent local lows
Curious to see how it plays out?
So am I. Let’s track it together.
Anna
Trading Lab Founder