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Since today\u2019s high was marked by two indicators, it might be the top for the counter-trend rally. It is also a five-day high. Short-term strength was seen in today\u2019s advance as the 20-Day MA was reclaimed and the day\u2019s session looks likely to close above the 20-Day line, which is at $2,903. Nonetheless, the larger bull trend breakdown pattern remains dominant.<\/p>\n
Although gold could continue to rise and test higher dynamic resistance levels indicated by the trendline, unless there is a daily close above the trendline or a rally above the record high, it looks more likely to continue the bearish correction. However, that might not happen immediately.<\/p>\n
Given last week\u2019s relatively wide trading range, this week\u2019s price range could complete the week contained within last week\u2019s range. That would set up an inside week for next week. Therefore, in the daily time frame this week could see consolidation above last week\u2019s low of $ 2,833 and below today\u2019s high. Near-term support is at today\u2019s low of $2,882 and yesterday\u2019s low of $2,855.<\/p>\n
The 50-Day MA, now at $2,781, is a key potential support level during a bearish correction. Notice that the line continues to rise and is close to converging with the prior trend high at $2,790. There has not yet been a test of support for the 50-Day line since it was reclaimed in early January. Therefore, it should indicate support if reached during the current bearish retracement.<\/p>\n