Gold near support or resistance of 1860

12 Jan 2021

We are coming up to a major area for gold around 1860 - we have seen this level over the past few months play a strong point for bears and bulls to play tug of directional war here

Our drop from 1960 breaks us out of our bullish channel and back into the bearish channel that was created this summer

I see our next major resistance after 1860 around 1907 while our next major support forms around 1816 area

I have drawn up three potential moves for gold
1.) bounce to 1860 - small dip and a fill to top of channel before continuing down
2.) Rejects channel at around 1880 to potentially form a new bullish channel structure
3.) rejects the 1860 range and falls to 1818 and potentially a retest of our bearish channel lows around 1760

Thanks for reading and happy trading!