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Gold technical analysis


The momentum is clearly bullish and the XAUUSD chart

Keep a close eye on short-term support levels including $2120 area, which now needs to hold to keep the bulls in full control of short-term price action. However, if a few short-term support levels break down then we could see another typical rug pull. Specifically, a move below today’s earlier low at $2110 could send the metal plunging back down towards key long-term support area around $2075 to 2088 area.



On the upside, meanwhile, the high from December at $2146 is out only point of reference to guide our trading decisions. If that level breaks, then watch out for Fibonacci extension levels and key round handles like $2150 to potentially offer soe resistance.



All told, the path of least resistance is clearly to the upside, but with prices over-extended, a short-term correction should not come as a shock.

Penafian

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