If gold can now rise above and stay above the 200-day moving average near $4,534, the long-term picture should improve.
ABCD Pattern Points Toward $4,984With a new swing low, a potential rising ABCD pattern has formed, which shows an initial 100% projected target near $4,984.
Given the potential upside indicated by the pattern, two lower targets become more likely to be reached.
There is the 50% retracement of the prior full decline at $4,771, and the 61.8% Fibonacci retracement at $4,852.
Both of those areas are reinforced by a prior lower swing high, with the higher level showing greater significance given the series of lower swing highs in the prior downtrend.
Next Test Could Shift Long-Term Outlook
Altogether, recent technical signals show the possible beginning of an uptrend. If gold can now rise above and stay above the 200-day moving average near $4,534, the long-term picture should improve. That would likely lead to a continuation of the current advance above last week’s high of $4,697, thereby triggering a continuation of the developing advance.
ABCD Pattern Points Toward $4,984
With a new swing low, a potential rising ABCD pattern has formed, which shows an initial 100% projected target near $4,984. That is where there will be symmetry in price between the two legs up from the recent bottom. Typically, that projection identifies a minimum resistance target derived from the rising ABCD pattern. Given the potential upside indicated by the pattern, two lower targets become more likely to be reached.
There is the 50% retracement of the prior full decline at $4,771, and the 61.8% Fibonacci retracement at $4,852. Both of those areas are reinforced by a prior lower swing high, with the higher level showing greater significance given the series of lower swing highs in the prior downtrend.
