GOLD Intraday: Possible short-term price correction


Time frame: H1

Technical analysis: The chart shows that the price was moving in a slight uptrend channel. On 03.12.19 it was able to break it by peaking at 1483. This peak turned out to be strong resistance, and on 06.12.19, after positive NFP data, the price of gold sharply returned to the channel, reaching its support. It is currently holding over it, signaling that an upward correction is possible.

Indicators: RSI is coming out of its oversold territory, which supports the scenario with an upward correction.

All levels of Fibonacci play a role of resistance.

All moving averages play the role of resistance.

Entry into a “buy” deal can be made at current levels or with a new downturn until channel support.

SL: 1456

Alternative scenario: If the price breaks through the support of the channel, then we can see a drop in the test of previous levels around the 1453-1450 zone.

 Trader Milko Zashev

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