- Gold reaches 1700 level, bears looking for bearish technical conditions for fresh entries.
- 4HR conditions need to ripen below trendline support, buy stops will go above there.
Gold has reached a fresh high for the US session in its correction within a series of bearish impulses.
At the start of the week, the bearish case for gold was as a result of the following analysis: Chart of The Week: Gold bears burst into the barroom-brawl zone.
The price of gold had continued within the bearish trajectory in the open highlighted in last week's analysis here: Gold Price Analysis: XAU/USD bearish case for the contrarians out there.
However, a correction of the last daily bearish impulse was expected to reach 1700 as a golden Fibonacci retracement, the 61.8%. This has indeed played out today.
The following are a series of charts that path the way for a potential bearish extension in a fresh impulse towards liquidity:
Market structure
61.8% Fibonacci level reached
4HR trendline intact, price needs to break below it
MACD is negative, price is below 21 moving average and has been rejected by the hard resistance and a 61.8% Fib retracement level.
Bearish targets towards liquidity
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