Expected Scenario:
The gold price experienced a negative trend recently, breaking below the $2,340.10 mark and closing the daily candlestick beneath it. This indicates a return to correctional bearish pressure. A closer examination of the chart reveals the formation of a potential head and shoulders pattern, signaling further downside momentum. The pattern suggests negative targets extending beyond the 38.2% Fibonacci correction level at $2,272.06, potentially reaching as low as $2,217.10.
Expected Outlook:
Anticipate additional declines in the forthcoming sessions, particularly if the price breaks below the $2,319.80 support level. Such a move would activate the negative implications of the aforementioned pattern, potentially propelling the price towards the projected targets. However, a breach of the $2,340.10 followed by $2,360.00 resistance levels could halt the expected decline and initiate a recovery phase.
Expected Trading Range:
The expected trading range lies between the support at $2,300.00 and the resistance at $2,345.00.
Trend Forecast: Bearish
In summary, the gold price is poised for further downward movement, potentially driven by the formation of a bearish head and shoulders pattern. Traders should closely monitor key support and resistance levels for potential trend reversals.
