Gold bounces off a key resistance
05 December 2022
The new week starts with a reversal on the American Dollar, which has implications all over the place, for example on commodities. In today’s technical piece we will analyze gold, which is currently going lower, with a very promising, mid-term sell signal.
Gold had a really amazing November, where it rose over 8% but December starts with a small hiccup. The first signs of possible weakness appeared on Friday when the price created a hanging man on the resistance created by the highs from August being not so far from the 38,2% Fibonacci. This negative signal was confirmed today as the price is creating an ugly candle with a long head and a big bearish body.
All this creates a sell signal with a target on the 23,6% Fibonacci. The chances that we will get there are quite high. A negative scenario will be canceled, when the price will climb above today’s highs but chances for that are now rather limited.