Scenario implementation: successfully
Gold continued to decline after a short consolidation, as suggested in the latest review. The scenario has been worked out successfully, the goals have been achieved. The price firmly consolidated under the resistance at 1865, from where it went lower, going beyond the formed corridor, reaching the target area at 1813 and 1791.
Immediately after testing the target area, the quotes bounced almost immediately and began to recover, which suggests the end of the downward correction and the resumption of the uptrend.
Forecast: renewed upward movement
To confirm these intentions, the price needs to gain a foothold in the current area. Probably, this may require a retest of the support level at 1830. If the level holds, then the subsequent rebound from it will give buyers a chance to send gold to local highs with a target area between 1886 and 1897.
In turn, the cancellation of the current scenario will take place if the price continues to decline and fixes below the reversal level at 1813.
Scenario implementation: performed by
The assumptions about a quick resumption of growth in the S & P500 index were not confirmed. The price continued to correct and passed the support at 3783, moving to the reversal level at 3758, which kept the attempt to continue the decline. After that, a rebound took place and now the index is gradually recovering above the signal levels.
The current alignment is still signaling that growth has chances to continue and the previous scenario remains relevant.
Forecast: continued upward movement
Confirmation of the intention to continue the upward movement will be the ability of quotes to gain a foothold in the current area with a limit at 3783, where support is expected, and with an extreme border at 3758. A subsequent rebound from this area will give a chance to form an upward impulse with the nearest targets in the area from 3855 to 3972.
The current scenario will be canceled in case of a breakout and consolidation below the pivot level at 3758.
Arman Beisembayev, Tickmill expert
The best trading conditions on a PRO account
More materials in our telegram channel: Tickmill