Gold Analysis - March 29th
What's up investor friends?
Gold has been in a long-term bearish channel for about 7 months. It has tried to break and recover to the upside, but has only generated some breakouts without any strength, thus returning to the bearish channel.
A few days ago I was watching gold inside a bearish wedge, near the upper trend line of the channel and the strong resistance at $1750.
At this point these two important resistances met, which in fact Gold tried to break on March 18, but only managed a wick and a close below both resistances.
The bulls should have been able to break through this ceiling above $1750 in order to resume the upside, but this has not been achieved. The bearish pressure has been very strong and gold has broken the wedge pattern to the downside.
At the moment gold is at the support of $1710 and with the intention to go lower. I propose the following scenario:
A break below support at 1710 and 1700$ would take gold to lower lows at 1680$, where the strongest support is located.
For the time being we must wait for the price action and see how it develops. If the bearish channel is broken to the upside, this scenario would be invalidated.
I hope you find this information useful, my investor friends. Best probabilities to you.
Disclaimer
The information given in this article is only my analysis and personal opinion. Be sure to do your own analysis and research. Trading cryptocurrencies, forex, commodities, etc, is risky.
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