Bully Hammer Setup
Today's decline has caused a breakdown below the small-leg pattern of the bearish shooting star candle on Tuesday, but today's bullish response may deny that signal. Nevertheless, the short-term price levels are relatively clear. Today's low of $2,864 is short-term support. If the downside is compromised, the trendline will not be able to maintain support, and the goal is low prices.
This week's low is $2,853, a key price level as it is part of a series in the weekly high and weekly lows. That bullish weekly pattern change may provide clues to that bullish pattern.
Monday's highest $2,912 short-term resistance
The advantage is that breakouts above the $2,909 high today show strength, but Monday's high should also be considered at $2,912. It was Monday's resistance, which had the highest historic closing price at $2,907. The record gold record Tuesday was $2,943.
The advance completed several targets derived from Fibonacci's expansion targets and projection targets. Therefore, resistance was seen in price areas that could lead to pullbacks. Nevertheless, if you go above the $2,943 height, the higher goal starts at $2,961, followed by $2,982.
Channels show a higher target potential
Additionally, note that there is a trend line at the top of the large parallel trend channel. The line was confirmed for $2,790 on the recent Swing High. It also shows a higher price potential if it can surpass Tuesday's high.
