Gold faces resistance around $1832 levels in the near term

Written by Finacademy.io

July 21, 2021

Technical Analysis:

Gold had rallied through $1834 levels over the last week before turning lower again. The yellow metal had reached up to fibonacci 0.50 retracement of the drop between $1816 and $1750 levels respectively. Since then, it has been in control of bears dropping through $1795 levels.

Gold might have carved a lower high around $1834 levels already or might push through $184750 levels in the next few trading sessions before facing strong resistance. Furthermore, thee drop towards $1795 also seems to be an impulse, which means the drop is incomplete yet.

High probability remains for the yellow metal to print one more low towards $1780 levels before finding interim support again. Yesterday’s high was also registered around $1822 mark, which is just above fibonacci 0.618 retracement of the drop between $1834 and $1795 levels respectively.

If the above wave structure holds well, Gold prices would stay below $1834 levels and turn lower towards $1780 levels in the next few trading sessions. We shall again review around $1780 zone, regarding Gold’s next major move ahead.

Most traders might be willing to hold Gold short positions until at least $1780 mark. A continued drop below $1780 will confirm that a meaningful top is already in place at $1834 levels and that bears are back in control.

Prepared by

Finacademy Technical Team

Related Articles

US dollar index is bearish against 97.00

US dollar index is bearish against 97.00

The US dollar index might have carved a lower high around 96.50 mark on Tuesday. The index dropped through 95.80 levels on Wednesday before finding some support.

English