Gold is a precious metal that has been used as a store of value and a currency for thousands of years.
Its price is influenced by various factors such as economic and political events, market sentiment, and supply and demand. In this blog post, we will analyze the recent price movements of gold and explore its future prospects.
March 2022: Major Resistance at $2070
In March 2022, gold reached a major resistance level and formed a new fractal resistance at $2070. This was a significant level as it had proved to be a strong barrier for gold to break through. As a result, the price of gold retreated from this level and started to decline.
September 2022: Double Bottom Formed at $1614
By September 2022, gold had declined significantly and formed a double bottom pattern at $1614. This pattern is a bullish reversal pattern that signals the end of a downtrend and the start of an uptrend. It was a positive sign for gold investors as it indicated that the price might start to rise again.
February 02, 2023: Bearish Crab Pattern Completed at $1927
In February 2023, gold completed a bearish crab pattern at $1927 and formed a new fractal resistance at $1959. This pattern is a bearish reversal pattern that signals the potential interruption of an uptrend and the start of a pullback/retracement. It was a warning sign for gold investors as it indicated that the price might start to decline again.
February 28, 2023: New Support at $1804
By the end of February 2023, gold had declined to a new support level at $1804. This was a critical level as it had been tested multiple times before and was a potential turning point for gold. The price of gold managed to bounce back from this level and started to rise again.
Now Approaching Resistance at $1959
Currently, gold is approaching a resistance level forged at $1959. This is a significant level as it was the point at which the bearish crab pattern was completed. It will be interesting to see if gold can break through this level or if it will be rejected again.
Future Prospects: Cup and Handle Pattern
Looking ahead, there is a possibility that gold might form a cup and handle pattern. This pattern is a bullish continuation pattern that signals the resumption of an uptrend. If this pattern forms, we have default targets projected at $2106. However, it is important to note that patterns do not always play out as expected, and other factors such as economic events and market sentiment can influence the price of gold.