Gold Price Analysis: Bears seeking a daily close below the support
|- The price of gold is trapped in daily support and resistance but pressured at 4-hour resistance.
- The support is fragile, but the weekly bullish target is eyed at dynamic trend line resistance.
The bulls are tiring at 4-hour resistance in a trapped environment on the daily chart.
The following analysis illustrates the weekly prospects of a test to the upside if resistance breaks and where the bears need to accumulate for a downside test of the weekly support structure.
Prior analysis, 4-hour chart
As illustrated, the price has indeed moved up to test the resistance and has been rejected.
This leaves scope for a downside continuation if support is broken.
Live market, 4-hour
The price has since been rejected by resistance multiple times and created lower lows.
With that being said, there needs to be a close below the lows and support structure on a daily basis.
A weekly outlook is somewhat more encouraging for a test of the dynamic resistance and prior support structure.
Weekly chart
Daily chart
From a daily perspective, the trapped environment is blocking a test of the weekly resistance and weekly support.
The daily downside wick is bearish, however, and could well be filled in for a restest of the weekly support ahead of a downward continuation within the broader bearish trend.
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