The next lower target is $2,813
The next downside is the three-week low of $2,813. However, given today's bearish momentum and decline, three-week lows could also fail as support if they fall below the main price level. Furthermore, below is the lowest expected 38.2% Fibonacci retracement at $2,813, which could indicate signs of support.
Nevertheless, when one important moving average breaks, the next higher moving average becomes a potential target. Therefore, a 50-day MA is the target with the highest correction. It is currently increasing at $2,764, which is close to a 50% retracement level and a convergence of $2,769.
Low potential targets
In late January, the previous trend was high at $2,790, generating a long-term bull trend continuation signal. That price level was a resistance to the upward trend, and it was about 13 weeks before it rose. Therefore, it can be easily tested as support during bearish retracements. Additionally, the 50-day line is rising, which could converge at the former height of $2,790 before reaching.
Or, certainly close to that price level. Nevertheless, it can also be considered the top of the potential support range. This assumes that the 50-day line will match or exceed a 50% retracement in the coming days or weeks.
Signs of strength facing downward pressure
The rally could be used for investors to leave long positions and enter the shorts. The $2,892 20-day MA is an obvious potential resistance, along with the $2,888 low over the previous few days. Finally, since February ends tomorrow, there is a risk that Gold will end the month in a relatively weak position in the lower half of the monthly trading range.
