Expected Scenario
Gold prices recently tested the neckline of a head-and-shoulders pattern but have struggled to break through, showing some bullish bias influenced by stochastic positivity. We anticipate the need for a negative catalyst to push the price below the $2318.00 level, which would activate the head-and-shoulders pattern and potentially drive prices towards our next main targets of $2272.06 and $2217.10.
Thus, we continue to suggest a bearish trend for the near term, supported by the negative pressure from the EMA50. However, it’s important to note that breaching the $2340.10 and subsequently the $2360.00 levels would halt the expected decline and might lead to a resumption of the main bullish trend.
Expected Trading Range
Support: $2315.00
Resistance: $2350.00
Trend Forecast: Bearish
In summary, while gold prices show some short-term bullish behavior, the overall forecast remains bearish, contingent on breaking below the $2318.00 level to confirm the head-and-shoulders pattern. Conversely, breaching $2340.10 and $2360.00 would shift the trend back to bullish.
