Gold bounced off the resistance zone at $1,850

In recent days, we could observe a strong rebound in the precious metals market. However, gold hit a key resistance zone today at $1850, where sellers reappeared. If the price fails to break above, another downward wave cannot be excluded. The first target for sellers is located at $1817, followed by a round level of $1800. On the other hand if buyers will manage to break above the aforementioned resistance at $1850 after the weekend, then upward impulse may accelerate. The next important resistance lies at $1895.

Gold interval H4. Source: xStation5

Looking at the lower timeframe, we can see that the upward trend continues. According to the Overbalance methodology, the sell signal appears when the largest correction, which is marked in purple, is negated. Breaking below the $1829 level, which is additionally strengthened by the 23.6% Fibonacci retracement, will open the way towards deeper declines.

Gold interval M30. Source: xStation5