Weekly Bearing Star Candle Form
Next is the one-week bear candlestick pattern that will be completed this week. However, this is only effective if it is triggered by a decrease of $3,260 below the weekly minimum. Gold is beyond the main potential support zone, with this week’s range from $3,260 to $3,500, so there may be additional consolidation within this week’s range before breakdowns occur.
It is interesting to note that weekly shooting candles follow the daily shooting star candles that have marked the best in trends. Because the two candles represent the fractal nature of the market, bearish confirmation of the weekly time frame can be seen more aggressive sales than ever occurred.
20-day MA marks key level
The first potential support area is a 50% retracement level of $3,228, which is low since April 16th. If a weekly pattern is triggered, the price area is because there is additional evidence that gold highs have reached for now. It remains to be seen whether that will lead to long-term or quick bear corrections.
The key trend indicator is the 20-day MA. It continues to rise, currently at $3,195. However, as the 20-day line was recovered on January 7th, the pullback to the line was unable to find support until a trade was made under the line. The same can happen with this next approach.
Lower targets with 78.6% retracement
Below the 20-day line is the highest previous trend, with a 61.8% Fibonacci retracement potential support levels of $3,168 and $3,164, respectively. However, the below-level decline is heading towards $3,073 towards a Fibonacci retracement of 78.6% in gold.
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