GOLD with key support break which predict $1100 per troy ounce


Our expectations: If the technical analysis turns out to be right once again, the gold will suffer another heavy blow. I’ll start with a monthly chart that best illustrates the breakthrough of the triangular formation and the slack of the price in nothing. The post-boom movement observed in 2011 is fairly balanced, with 38.2% Fibonacci correction not being able to overcome over the past 5 years. From 2016. to-date gold forms a triangular formation after correction upwards, and the fall last week has led to a lower diagonal. Formation is characteristic of a continuing trend and a turning trend, in which case we will look at it as a continuing trend. Designing the downward movement forming the base of the triangle we will notice that the area around $1120 turns out to be the first possible price target after the breakthrough. To confirm, we need to wait for the closure of the current week under the diagonal diagonal. I expect a slowdown in the downward impulse of about 23.6% Fibonacci correction, but in the short term. Long-term positions would be appropriate with SL over the upper diagonal of the triangle.

Alternative scenario: If this price is closed within the triangle this week, the breakthrough will be considered fake and the negative scenario will be spoiled. In that case, we will remain in standby mode until the price has fallen in one of the directions.

 Trader Petar Milanov

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