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Gold Forecast Video for 23.10.23 by Bruce Powers
Gold reached its next higher target zone today as it advanced to a high of 1,997 before encountering resistance and turning down. An intraday retracement followed, taking gold down to the lower third of the day’s high to low trading range. This is a sign of short-term weakness that may lead to a deeper retracement than what we’ve seen so far today. If gold closes in the lower half of the day’s range, a drop below today’s low of 1,972 will provide a bearish signal. The halfway point for today’s price range is 12.60.
Possible Bearish Inverted Candlestick Pattern
Further, at the time of this writing, gold is on track to complete Friday as a bearish inverted hammer candlestick pattern. Given that gold is showing intraday weakness after it reached a potential resistance zone today, the chance for a bearish trigger of today’s low seems like a strong possibility. The price zone is made up of a prior swing high, several Fibonacci levels, including the 78.6% at 2,001 (not reached but close enough for now), and the completion of a measured move, based on a percentage move, at 1,993.
Measured Move Complete
Gold was up as much as 10.3% from the October 6 swing low of 1,810 in 10 days. You can see the two prior measured moves within the uptrend on the chart of 10.5% and 11.1%. Each sharp rally occurred in only eight days. The current rally would match the 10.5% rally at 2,000 (corrected from 1,993 in earlier article). However, today’s high of 1,997 is close enough for now given the intraday decline off the high to consider the measured move complete (assuming today’s close is in the bottom half of the day’s range).
Monthly Chart is Bullish
The big picture from the monthly chart has a part to play currently. Gold has broken above and closed above the highs of the past two months, at 1,953 and 1,966, respectively. It is on track today to close at its highest weekly closing price in 22 weeks. This behavior shows improving strength as gold prepares to test previous highs of the past several years.
For a look at all of today’s economic events, check out our economic calendar.
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