GOLD is currently evolving in an ascending channel (DS1 – DR1). The channel support seems to be very strong (5 hits without break).
Since end Jan and since the hit of the 1360$, a new minor descending channel (DR2-DS3) can be observed. Price is now arrived to the cross between DS1 and DR2.
From there, 2 hypothesis are possible:
H1: rebound on DS1, break of DR2 and bullish impulse to WR1 (major weekly resistance of 1380$).
H2: Break of DS1, bearish continuation until WS1 (major weekly support) before a rebound.
H1 is the preferred scenario with a probability of occurance of 74%.
Since end Jan and since the hit of the 1360$, a new minor descending channel (DR2-DS3) can be observed. Price is now arrived to the cross between DS1 and DR2.
From there, 2 hypothesis are possible:
H1: rebound on DS1, break of DR2 and bullish impulse to WR1 (major weekly resistance of 1380$).
H2: Break of DS1, bearish continuation until WS1 (major weekly support) before a rebound.
H1 is the preferred scenario with a probability of occurance of 74%.