Gold Latest Weekly Forecast: Bounce to $1828 and Drop to $1788
Gold has closed the Daily as well as Weekly candle at $1811 which is well below 38.2% Fibonacci level ( $1828 ) of retracement measured from $1616 low and $1860 high
We see high possibility of a technical bounce towards broken support turned resistance $1818 followed by retest of $1828
Sellers are likely to prefer selling the resistance areas and it looks easier for Gold bears to hunt Gold down through support $1808 - $1802 - $1792 and make a strong test of 50% Fibonacci level at $1788
If selling intensifies below $1800, we understand that Gold will extend decline to $1775
As Daily RSI is already around oversold conditions, by the time Gold drops to $1788 & $1775, Daily RSI would reach extreme oversold conditions which will call for imminent rebound triggering a strong momentum accumulation causing sharp move to $1828 followed by decisive break above resistance zone to scale up for next leg higher $1878
Note: This is a projection based on study of price action and this does not claim to be a trading advice.
We see high possibility of a technical bounce towards broken support turned resistance $1818 followed by retest of $1828
Sellers are likely to prefer selling the resistance areas and it looks easier for Gold bears to hunt Gold down through support $1808 - $1802 - $1792 and make a strong test of 50% Fibonacci level at $1788
If selling intensifies below $1800, we understand that Gold will extend decline to $1775
As Daily RSI is already around oversold conditions, by the time Gold drops to $1788 & $1775, Daily RSI would reach extreme oversold conditions which will call for imminent rebound triggering a strong momentum accumulation causing sharp move to $1828 followed by decisive break above resistance zone to scale up for next leg higher $1878
Note: This is a projection based on study of price action and this does not claim to be a trading advice.