Potential challenges of hitting a high of $2,956
A recent bearish retracement to the $2,833 swing donkey and subsequent rally could put gold in a strong position and break into new record highs. A new record of $2,956 was established in late February, and we saw the progress we have seen today.
The first new high target of $2,978 is established by the rise in the ABCD pattern looking for price symmetry between the two recent increases. For $2,982, you can consider that another target is nearby. The next higher goal above that price range is $2,990 for the 127.2% Fibonacci expansion of the recent bear correction.
Weekly breakouts check strength
It is also important that today's bull breakout caused weekly breakouts that surpassed last week's high, taking shape within a week. The end of this week's daily routine, past the $2,930 high last week, checks for breakouts in the weekly time frame.
Bearish RSI diverge concerns
Despite the above bullish signs, there is concern about the divergence of bearish in the relative strength index (RSI). It shows that bullish momentum decreases. Additionally, last month ended with a candlestick pattern of a potentially bearish shooting star. So far, March transactions have been in the price range from $2,772 to $2,956 starting in February. As gold approaches its price range peak last month, there is a risk of losing momentum ahead of new records. The sales pressure shown by the monthly Shooting Star Candle Pattern indicates the potential for an increase in sales pressure as a record high of $2,956 is approached.
To see all of today's economic events, Economic calendar.
