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New Record Daily Closing Price
A new record high of $2,943 was reached on Tuesday and it was followed by a pullback to Wednesday’s low of $2,864, which is where support was seen. And the support level was indicated by a rising trendline. In other words, resistance of the trendline was broken during the advance, and a pullback finds support at that prior resistance line. This is bullish behavior and typical for an advancing trend. Given the subsequent bullish behavior today, the potential for new trend highs prior to a pullback, is looking more possible.
Higher Targets
There are a couple of initial higher targets to have on the radar. An extended target for a rising ABCD pattern (not shown) is $2,981. It is the 200% extension of the bearish correction from the October peak. Then, a little higher is the next target of $2,982, which is identified by two measurements. With two indicators pointing out the same price area, that area has the potential of being more significant than the previous level.
Also, be aware of the top trendline that has represented dynamic resistance previously. If gold continues to rise, it becomes a target, along with the price levels previously mentioned. And, just in case, the next higher level above $2,982 is not till $3,012. Might the $3000 whole number be in play for gold?
Week May End Bullish
Finally, there is one more day for the week and gold looks likely to close bullish, in the top third of the week’s trading range. That would put it in a bullish position heading into next week and increase the chance that higher targets are reached.
For a look at all of today’s economic events, check out our economic calendar.
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