The recent strong declines in the gold market have led to a test of key support. Looking at the W1 interval, price hit the lower limit of the 1:1 structure. The downward move we've been seeing since August is exactly the same as the March sell-off and the declines from the second half of 2016. According to the Overbalance methodology, as long as the geometric structure is not negated, the long-term trend remains upward. However, should the weekly candle close below the $ 1,820 level, the trend should be expected to change in the long term.
Gold interval W1. Source: xStation5
Looking at the H4 interval, gold has been trading in a downward move recently. The declines accelerated as the price break below the key support zone at $ 1,850, which should now act as resistance according to the polarity principle. The price is currently below the $ 1,820 level, which is a key support from a D1 perspective, which is not an incentive to buy, so further declines are possible. Buyers may activate when the price returns above the aforementioned level of $ 1,820, but only the return above $ 1,850 will prove a permanent change in sentiment.
Gold interval H4. Source: xStation5
