GOLD → False breakdown of the liquidity zone

22 de mai. de 2023

Gold is retesting important resistance at 1981.68 and consolidating in a narrow range in the red zone. What to expect from the price in the near term?

On Friday the market bought out the fall, the price tested the resistance and the liquidity zone, but failed to break through that area.
Since the opening of the session, the price has been declining and forming a consolidation below the level, thus the market is clamping the price in the range between the resistance 1981 and the downward support line.
A breakout of one of the boundaries could form momentum.
Since gold got positive fundamental leverage on Friday, there is a chance for an upside move from the 1981 level (breakout strategy).
But the price broke the strong trend earlier and the bears might continue falling after gaining liquidity, which would be activated by a break-down of the 1969 support.

Strong support: 1969, the descending line.
Strong resistance: 1981, 1993.
A break-up of one of the consolidation frames will determine the further fate of the asset. On Monday it is difficult to judge the market sentiment, in the priority I will expect a decrease to 1969 and to 1949.

Regards, R.Linda!

23 de mai. de 2023

Nota

Gold fails to pass the 1981.68 liquidity zone. A false breakout is formed and the price returns under the strong downward resistance line (dotted line)