Gold double bottom
Gold price is moving back above $1,800 having tested the November 2020 lows. Price has so far respected the lows and is bouncing off this horizontal support area. This double bottom at $1,760 combined with a bounce could push price higher towards $1,890-$1,900 and the upper channel boundary.
Blue lines – bearish channel
Red line -trend line support
Green line – horizontal support
Gold price is trading above $1,800 and shows signs of strength. Short-term resistance is found at $1,850 and next at $1,900-$1,890. If price starts making higher highs and higher lows then we should expect the upper channel boundary to be challenged. Price is still inside the downward sloping channel created after the top back in August 2020. Support is at $1,780. Breaking below this level will increase chances of re-testing $1,760 low.
The material has been provided by InstaForex Company – www.instaforex.com