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For the last 2 years, Gold has been bouncing in a range between $1700 and $2070 and is currently testing the major support level around $1700 as seen below.
The price has used the yellow highlighted as an area for support zone and a rejection zone. Over the last 2 years clear rejections have occurred every time the price has reached around $1700’s. These candlestick rejections indicate a high probability of something similar potentially happening.
We find further confluence of this analysis by looking at the weekly time frame, where Gold has broken above the trend line, and has now come back to retest it. This can often result in a bounce off the trendline, creating the start of a new uptrend.
If Gold continues to remain above the trendline and can hold the monthly support, it may indicate that it is in the early stages of a potential reversal. This may lead to another move toward the $2000’s.
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