Gold, Technical Analysis – H4

Gold briefly dipped below the psychological $4,000 level yesterday, but bulls bought the discount. Nevertheless, a clear narrowing of the trading range is evident (lower highs and higher lows), along with a lack of strong technical support at current levels (a purely psychological mark alone will not provide lasting support). Thus, after some further consolidation (for which sufficient room still remains), an impulse move below $4,000 per ounce can be expected.

Key Levels:

⬜ Support: $4,000

⬜ Resistance: $4,090

Primary Scenario:

Consolidation within the $4,000–$4,090 range.

Alternative Scenario:

Decline below $4,000.

Analyst Commentary:

Intraday rallies may be used by sellers to add to short positions.