Revisiting ABCD Extension Targets
An important point to consider is that today's highs are slightly above the previous trend of $2,882, and resistance is closer to rising ABCD pattern targets of $2,889, as shown on the chart. The ABCD pattern appears to identify similar or harmonic relationships between successive upward or downswings.
Once these relationships are met, potential pivot levels are identified. The $2,889 target is 161.8% (golden ratio) of the price change seen in the initial advance labeled AB. Given today's bearish reaction, it appears that Kim is aware of that zone of resistance.
It may be a pullback
Given the strong gatherings in gold, it is healthy to rest the bull trends and retreat or consolidate before prices rise. The obvious potential support zone is the high of $2,790. This price level can be combined with this week's low and Fibonacci retracement of $2,772 and 38.2%. Together, they offer a price range from $2,790 to $2,772.
With 20-day MA rising, it's not far from that price range. It currently has 2,764. The 20-day line was collected in early January, improving its upward momentum. Since then, the 20-day line has not been tested as support. Certainly, if that's happening, it could be during a bearish retracement in the future.
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