- Gold suffered a serious decline last week on covid vaccine headlines
- Still, the price has maintained its trading range between a parallel channel
Gold suffered a staggering decline last week on the news of a potential coronavirus vaccine but has recovered some losses since then. As the public perception about the vaccine has cooled, risk assets have slowed their gains. That being said, gold seems susceptible to a continuation of its current trading range.
The technical outlook could hold the more pertinent clues as to which direction the price will head in the near future.
Confined between a bullish parallel channel and grasping for its next move, further consolidation upwards on the hourly chart seems likely for the time being. Still, a break through either of the barriers could open the door to an extension in that direction and eventually see gold test the levels beyond.
Currently the lower channel trendline which coincides with 50% retracement acts as an immediate support for the bulls to test 1,885.00, a significant barrier level. A breach above this level will push the price further to test the near-term resistance at 1,896.0. To that end, 1,911.0 is the next target resistance along with upper bounds of the commodity’s current trading range.
On the flip side, if the bullish channel fails to keep the gold price with its boundaries, a break below could lead the bears to test a critical support on the daily chart at 1,858.0.
The material has been provided by InstaForex Company – www.instaforex.com
🚀If you want to get a Forex Robot Coded as per your trading strategy but are unable to do so because of the high price for the Robot then you can take advantage of the CROWD FUNDING campaigns feature. ✔ These are some crowd funding campaigns for Forex Robots, which when completed can provide the very same Forex Robot to the participants at an average price of $5-$10 per participant. ✔ You either participate in one of the already listed campaigns or send us your Forex strategy : Submit Crowd Funding Campaign , for which you would like the Forex Robot to be coded. A Crowd Funding Campaign would then be started for the same . ✔ All you have to do later on is to share the campaign online with your friends to encourage more people to participate in the campaign.
As a result, each participant can get that Forex robot for just a campaign contribution of $5 (which is the minimum). Participants can back the campaign by anything above or equal to $5 to reach the funding goal to close the campaign.