A possible double top form
Today's price action leaves a small double top. Neckline and breakdown levels were lows of $2,864 on Tuesday. However, its pricing area is currently the next potential support level: Another bearish evidence from today is that it is a significant inversion day that produced the second top of the possible double-top pattern. The stacking of bearish evidence strengthens the possibility of bearish correction.
The weekly chart is bearish
Additionally, the weekly chart sets Gold this week to complete the candle leg pattern of a bearish shooting star. So drops below $2,853 this week's minimum trigger a bearish weekly inverted signal. This gives you gold in the position to test your 20-day MA, and is currently at $2,817. Note that the 20-day line revived in early January, so the gold price exceeds the line. The line has not been tested as support since.
Certainly, if it continues, it could represent support during the current bear fix. Otherwise, the latest new high breakout level is $2,790 and you may see support around that price area. Additionally, monthly support is a bit lower at $2,772. These two price levels can be considered as potential support ranges ranging from $2,790 to $2,772.
Testing support with 20-day MA possibilities
Given the current price pattern, including monthly bullish breakouts triggered this month, bearish corrections should not deny a longer bullish pattern unless they fall below this month's low of 2,772. The moon is not perfect yet, but its low is low every week, and the drop below it is bearish in itself. However, to maintain a mid-bullying view, a 20-day MA should show support and lead to a bullish reversal.
To see all of today's economic events, Economic calendar.
