Gold's Triumphant Rise: Breaking Chains and Eyeing $2070
17 October 2023
In the world of precious metals, gold has always held an esteemed position. Not only for its historical importance, but also its ability to act as a refuge in tumultuous market conditions. Yet, what we're witnessing on gold's charts these days is more than just another price fluctuation. It's a tale told through key technical levels, giving us hints about its future trajectory.
The tapestry of gold's price action has been painted with three critical horizontal benchmarks. The first, sitting comfortably at $1800, is a pivotal support marked distinctly with a green hue. Not too far above, at $1900, we see another support, bathed in a warm orange. While both these levels have been flirted with in recent times, the most intriguing of them all lies at $2070 - a long-term horizontal resistance that's been elusive, yet is now within striking distance, as denoted by the commanding blue line.
Amplifying the bullish narrative is gold's recent escape act. The metal has managed to break free from a confining channel down formation, a trend characterized by two black lines on the chart. With the price currently trading north of the channel's upper boundary and holding firm above the $1900 mark, the bulls are undoubtedly in control. This bullish sentiment seems poised to remain as long as the price stays perched above these two critical junctures.
However, like all tales of triumph, there's a twist. A potential dip below the orange-hued $1900 level could spell trouble, signaling a shift in momentum and possibly ushering in sellers. While the current landscape doesn't seem to favor such a scenario, it remains a possibility traders must be wary of.