Gold Price Analysis
The gold price is currently testing the neckline of a head and shoulders pattern, a bearish technical formation evident on the chart. A break below the neckline at $2,317.40 is needed to activate the negative implications of this pattern. Once this level is breached, a bearish correction is expected to commence, with initial targets at $2,272.05 and potentially extending to $2,217.10.
Expected Scenario
Given the current technical setup, we continue to forecast a bearish trend for gold in the near term. This outlook is reinforced by the negative pressure exerted by the 50-day Exponential Moving Average (EMA50). It’s important to note that the continuation of this bearish wave relies on gold prices remaining below $2,340.10, and more critically, below $2,360.00.
Expected Trading Range
Support: $2,300.00
Resistance: $2,340.00
Trend Forecast: Bearish
With these factors in mind, traders should prepare for potential downside movements in gold prices as the negative pattern comes into play.
