The week on Gold started with a bearish gap, followed by a test of an important support area, where the upward trend line coincides with a 50% abolition of the last impulse.Today’s lows also reached level of Fibo 61.8%.
It is worth to observe how the price action in the area of 1270.00 is developing. Signals of potential return to growth may lead to long positions consistent with the prevailing trend.
The closest target for this scenario will be move to the last week closure, which would fill the gap. Than next will be targeted recent highs around 1295.
Alternatively, breaking the trend line and closing under 66% abolition of the last upward impulse may release a deeper sell-off. Potential drops could then reach the bottom at 1247.00.
The above analysis was done on an account with an XM broker who offers $ 30 per start!
