Spot gold (XAU/USD) is +0.7% higher in US trading despite an earlier spike lower that was fuelled by the latest US GDP report (the first estimate).
Trend + AB=CD Support Suggest a Buyers’ Market
Technically, the price of gold could be poised to attack higher terrain. The trend, according to the higher timeframes, is unquestionably north after recently recoiling from all-time highs of $2,431. We have limited support on the weekly scale until as far south as $2,147, though the daily chart recently shook hands with a 1.618% Fibonacci projection ratio at $2,293, which, for many harmonic traders, will be viewed as an ‘alternate’ AB=CD support pattern. Of relevance, this structure is located a whisker north of daily support drawn from $2,280.
First Upside Objective Reached; Traders Eyeing Next Layer of Resistance?
Interestingly, recent price action already reached the first take-profit target from the AB=CD support at $2,345 (the 38.2% Fibonacci retracement ratio derived from legs A-D), which will prompt some ‘AB=CD longs’ to reduce risk to breakeven and liquidate a portion of their position. Ultimately, though, harmonic traders will perhaps target the 61.8% Fibonacci retracement ratio at $2,377, a level that potentially triggers some traders to liquidate the entire position; others may be encouraged to begin trailing their position in the hope the yellow metal refreshes all-time highs and continues its upward trajectory.
Trend + AB=CD Support Suggest a Buyers’ Market
Technically, the price of gold could be poised to attack higher terrain. The trend, according to the higher timeframes, is unquestionably north after recently recoiling from all-time highs of $2,431. We have limited support on the weekly scale until as far south as $2,147, though the daily chart recently shook hands with a 1.618% Fibonacci projection ratio at $2,293, which, for many harmonic traders, will be viewed as an ‘alternate’ AB=CD support pattern. Of relevance, this structure is located a whisker north of daily support drawn from $2,280.
First Upside Objective Reached; Traders Eyeing Next Layer of Resistance?
Interestingly, recent price action already reached the first take-profit target from the AB=CD support at $2,345 (the 38.2% Fibonacci retracement ratio derived from legs A-D), which will prompt some ‘AB=CD longs’ to reduce risk to breakeven and liquidate a portion of their position. Ultimately, though, harmonic traders will perhaps target the 61.8% Fibonacci retracement ratio at $2,377, a level that potentially triggers some traders to liquidate the entire position; others may be encouraged to begin trailing their position in the hope the yellow metal refreshes all-time highs and continues its upward trajectory.