Gold has been following the resistance trend line since $1965 highs as seen on the 4H chart presented here. The yellow metal had dropped through $1760 lows last week before finding some support again. It has opened this week higher and is producing a counter-trend rally towards $1820/25.
The yellow metal is soon approaching short-term resistance around $1820/25 zone. As seen on the chart here, the metal faces trend line as well as Fibonacci 0.618 retracement around $1820 mark. Bears might be poised to take control back from there.
Alternately, a push-through trend line resistance will open doors for a push towards $1855 levels, which is marked as immediate price resistance here. A much complex corrective wave might be underway towards $1880/1900, if Gold breaks above $1855 mark.
The yellow metal might hit the Fibonacci 0.618 retracement of its entire drop between $1965 and $1760, which is seen towards $1880/1900 zone if it breaks trend line resistance and eventually above $1855 going forward.
Until Gold remains into the sell zone of the above trend line resistance, we favour a bearish turn from $1820/25 zone. Downside potential remains towards $1650 and $1550 levels respectively. It would be interesting to see how bears react around $1820.
Gold is a clear sell on the rallies chart and would turn bullish only if $1965 is taken out. The yellow metal is also facing past support turned resistance around $1810/15 levels, marked as Wave 1 on the chart here. Be prepared for a potential bearish turn from current price action.
Finacademy Technical Team
Silver has raised through $27.55 levels this morning, alongside most risk assets. The metal has approached a strong resistance zone now and bears might be inclined to take control back soon. Also note that it has almost reached the fibonacci 0.618 retracement of the entire drop between $30.13 and $23.80 levels respectively.
USDJPY bulls are now looking poised to push through 112.00/50 mark, after have carved yet another higher low around 107.50. Please note it bounced off the trend line support since January 2021 lows as well. Looking higher from here for next few weeks.
Gold had raised through $1799 yesterday before reversing sharply towards $1770 before finding support again. The yellow metal is pulling back at the moment and seems to have carved a meaningful top already yesterday. If correct, $1786 might offer strong support.