#GOLD : Can Buyers Hold the $3,895 Support?
Gold is now testing a key support zone around $3,895–$3,900 after a strong sell-off from the $3,965–$3,970 resistance zone.
On the 30-minute chart, price has been making lower highs since that rejection, which shows that sellers are still in the game. But now buyers are trying to defend the lower support area.
What I am watching:
$3,895-$3,900: Short-term support. If the buyers can hold this zone, we could see a relief bounce toward $3,930-$3,940.
$3,965–$3,970: Strong resistance. This is the area that needs to be reclaimed by buyers to improve the short-term structure.
$3,877: Key downside level. This level may come back into focus with a clean break below current support.
I think Gold is at a significant decision point. There is a chance of a bounce off the current support but I would not call the short term structure bullish until price starts to reclaim the resistance levels.
If $3,895 fails, the downside scenario becomes more probable. “For now I will watch for price reaction around this support before jumping into a position.”
What do you think guys? Will buyers step up to defend this zone or are we looking at another leg down?
Gold is now testing a key support zone around $3,895–$3,900 after a strong sell-off from the $3,965–$3,970 resistance zone.
On the 30-minute chart, price has been making lower highs since that rejection, which shows that sellers are still in the game. But now buyers are trying to defend the lower support area.
What I am watching:
$3,895-$3,900: Short-term support. If the buyers can hold this zone, we could see a relief bounce toward $3,930-$3,940.
$3,965–$3,970: Strong resistance. This is the area that needs to be reclaimed by buyers to improve the short-term structure.
$3,877: Key downside level. This level may come back into focus with a clean break below current support.
I think Gold is at a significant decision point. There is a chance of a bounce off the current support but I would not call the short term structure bullish until price starts to reclaim the resistance levels.
If $3,895 fails, the downside scenario becomes more probable. “For now I will watch for price reaction around this support before jumping into a position.”
What do you think guys? Will buyers step up to defend this zone or are we looking at another leg down?
