$2,955: Gold’s Line in the Sand as Bulls Fight for Control

In today’s technical analysis, let’s take a look at an interesting and promising setup on gold.

Gold is currently defending a key horizontal support around $2,955 per ounce, marked with a green line. This level represents the highs from the end of February and is now being tested as a support level. What makes the current situation even more intriguing is the formation of an inverse head and shoulders pattern, highlighted with a yellow rectangle.

At the moment, gold is battling the blue neckline resistance of this pattern. A daily close above this neckline would confirm the breakout and trigger a buy signal, based on the classic trend-reversal pattern. That would open the door for a potential mid-term upswing.

However, if the price fails to break above the blue neckline and drops back to retest the green support, the mood could shift back to negative. A break below the $2,955 support would invalidate the bullish setup and act as a strong signal to sell, potentially opening space for a deeper correction.

As of now, the setup remains constructive for the bulls, but confirmation is still needed. All eyes are on the neckline.

Source: https://www.axiory.com/analytics/technical-analysis/2-955-gold-s-line-in-the-sand-as-bulls-fight-for-c