GOLD – last week ended with a strong accent, the price broke the local trend line and ended Friday’s quotation at 1681 $/oz.
The “prophecy” from the previous analysis of this precious metal has come true, the sequence of higher highs (HH) and higher lows (HL) has been broken and we can conclude that the gold price has started a downward correction.
This scenario is supported by the appearance of a maximum on the MACD oscillator which is usually a signal to change direction on the price chart. The reason for the lower price of gold, which is a safe haven, may be the optimism in the financial markets caused by promising test results of a new drug, remdesivir, which is a cure for coronavirus disease.
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Moving on to the M15 chart, we can distinguish several consecutive levels which may be the target of supply. These are successively : 1662, 1648 and 1641. When planning a sell order, you need to consider the market trying to re-test the defeated trend line, which is about $30 above.
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