I examine the current status of the gold market and project possible price changes using technical tools.

I’ll concentrate on the daily support level and its relevance, as well as the probability of a bullish crab pattern forming and the significance of past resistance shifting into support.
The daily support level is an important location to focus on in gold price analysis. If gold fails to hold above this support level, it may fall back to $1916. This could indicate a negative market mood, which could contribute to more selling stress.
It is important to recognize that such a drop could offer new positioning opportunities for future positive moves. The price of roughly $1916 would put the price of gold closer to the ascending channel support that has been built. Furthermore, this could lead to a bullish crab pattern, in particular near the 161.8% Fibonacci extension level of the previous swing high. The formation of this pattern suggests a possible reversal and an upcoming bullish movement.
It is necessary to bear in mind that we are still far away from breaking through the daily fractal support, which is crucial when determining the overall market direction, in my opinion. Furthermore, regaining the previous resistance formed in February of this year at $1959 might have to be considered. This previous resistance level has the potential to become support, adding to the bullish argument for gold.
While a price drop is possible if gold fails to hold above the daily support level, it is extremely important to pay attention to the potential future possibilities that could arise from such a breakdown.
The formation of a bullish crab pattern, as well as its proximity to the ascending channel’s trend line support, point to a bullish scenario in the future. However, keep a watch on the daily fractal support and the eventual recovery of the prior resistance level, as they might have a significant influence on the overall momentum, at least in the near term.
To make rational decisions in the gold market, traders and investors should closely monitor these important levels.

Safe Trades,
André Cardoso
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