Gold Forecast Video for 27.07.23 by Bruce Powers
Gold triggers a daily bullish reversal as it breaks out of a flag pattern on a move above yesterday’s high of 1,966. A daily close above that price level is next needed to confirm strength. At the time of this writing gold is on track to confirm strength of the breakout and close above yesterday’s high.
Recent Low is Solid Support
The recent retracement low of 1,952 yesterday provided solid support given the several technical confirmations of that price zone being a key pivot. It includes the 34-Day EMA, the 61.8% Fibonacci retracement, and an internal uptrend line. Also, the bullish price advance that occurred after the bottom provides additional bullish evidence.
If Weakness, Watch These Levels
Nevertheless, if short-term weakness shows up today’s low of 1,962 is near term support. If gold pulls back again to test lower price levels as support, there are a couple price levels to watch. The first would be dynamic support represented by the uptrend line. By tomorrow the price support level at the line is around 1,560. Also, there is support of the recent swing low at 1,952.
Strong Daily Close Above Yesterday’s High Confirms Strength
If gold closes strong, in the upper half of the day’s range, it will have confirmed a continuation of the bull trend. Watch for the next confirmation of strength to occur on a daily close above the recent swing high of 1,983. The first upside target above that swing high is at 1,997. That is the 127.2% Fibonacci extension of the recent decline. Next up is an area of Fibonacci confluence that includes the 61.8% retracement at 2,010.
Poised to Head Towards Record Highs
Gold is technically prepped to continue to evolve its uptrend to test prior highs around 2,082, and then exceed that high and move into new record highs. When might this happen is the question. Therefore, the recent high and current prices may be the lowest prices for gold in some time. We will be watching momentum and price behavior closely following today’s breakout to identify signs of weakening and strengthening.
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