Gold Analysis: Key Levels for Reversal (Dec 23, 2024)
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Today, we will analyze the Gold chart.
Daily Chart Analysis
Gold has shown a steady upward trend since 2017, forming consistent frames and rising in a stepwise manner. However, even within this long-term uptrend, the potential for both corrections and rebounds exists, which requires careful monitoring and strategic responses.
Currently, in the red box zone, we observe the following:
The moving averages have not yet formed a death cross, but Gold is facing resistance below both the 20-day and 60-day moving averages on the daily chart.
Additionally, the Ichimoku Cloud is acting as resistance, which is unusual compared to its usual supportive role.
The last time the Ichimoku Cloud acted as resistance was back in February 2024, making this resistance the first in nearly 10 months.
The key support level to watch is 2596.7, which served as last week’s support.
However, the possibility of a bearish scenario seems higher for the following reason:
The Lagging Span (Chikou Span), currently within the green box zone, is at risk of breaking below the candlesticks. Unless a strong rebound occurs this week, the Lagging Span may pierce through the candles, leading to additional resistance and increasing the likelihood of Gold breaking below 2596.7.
If 2596.7 is breached, the next support level is 2541.5.
While the lower limit of the bearish frame remains uncertain, the orange box zone represents the next key area to monitor. Depending on the strength of the selling pressure, Gold could potentially test the upper boundary of the orange box.
Short-Term Rebound Levels
Where can we expect a short-term rebound?
The key level to watch is the 2656.2 breakout.
After a strong bearish candlestick appeared, Gold established a short-term frame between 2656.2 and 2596.7 on the 1-hour chart. While some rebound attempts followed, Gold has failed to break above the previous high from before the bearish candle appeared. As a result, it remains outside the orange box frame.
A breakout above 2656.2 would signify entry into the lower part of the orange box frame, potentially leading to a temporary rebound.
For a complete trend reversal, Gold must break above the green box zone, which represents the long-term downtrend line.
Conclusion
Gold has shown consistent upward trends over the years, but no market can sustain perpetual growth without facing corrections. The current technical indicators suggest a strong possibility of a downward adjustment in the short term. While a temporary rebound could occur above the 2656.2 level, a failure to maintain key support at 2596.7 may lead to further declines toward 2541.5 or even the lower bounds of the orange zone.
As always, markets move in cycles. It is important to adapt to changing dynamics and remain prepared for both bullish and bearish scenarios. Patience and discipline are key—profitable opportunities always arise for those who wait for the right moment.
If this analysis has been helpful, please like, follow, and share your thoughts in the comments!
Today, we will analyze the Gold chart.
Daily Chart Analysis
Gold has shown a steady upward trend since 2017, forming consistent frames and rising in a stepwise manner. However, even within this long-term uptrend, the potential for both corrections and rebounds exists, which requires careful monitoring and strategic responses.
Currently, in the red box zone, we observe the following:
The moving averages have not yet formed a death cross, but Gold is facing resistance below both the 20-day and 60-day moving averages on the daily chart.
Additionally, the Ichimoku Cloud is acting as resistance, which is unusual compared to its usual supportive role.
The last time the Ichimoku Cloud acted as resistance was back in February 2024, making this resistance the first in nearly 10 months.
The key support level to watch is 2596.7, which served as last week’s support.
However, the possibility of a bearish scenario seems higher for the following reason:
The Lagging Span (Chikou Span), currently within the green box zone, is at risk of breaking below the candlesticks. Unless a strong rebound occurs this week, the Lagging Span may pierce through the candles, leading to additional resistance and increasing the likelihood of Gold breaking below 2596.7.
If 2596.7 is breached, the next support level is 2541.5.
While the lower limit of the bearish frame remains uncertain, the orange box zone represents the next key area to monitor. Depending on the strength of the selling pressure, Gold could potentially test the upper boundary of the orange box.
Short-Term Rebound Levels
Where can we expect a short-term rebound?
The key level to watch is the 2656.2 breakout.
After a strong bearish candlestick appeared, Gold established a short-term frame between 2656.2 and 2596.7 on the 1-hour chart. While some rebound attempts followed, Gold has failed to break above the previous high from before the bearish candle appeared. As a result, it remains outside the orange box frame.
A breakout above 2656.2 would signify entry into the lower part of the orange box frame, potentially leading to a temporary rebound.
For a complete trend reversal, Gold must break above the green box zone, which represents the long-term downtrend line.
Conclusion
Gold has shown consistent upward trends over the years, but no market can sustain perpetual growth without facing corrections. The current technical indicators suggest a strong possibility of a downward adjustment in the short term. While a temporary rebound could occur above the 2656.2 level, a failure to maintain key support at 2596.7 may lead to further declines toward 2541.5 or even the lower bounds of the orange zone.
As always, markets move in cycles. It is important to adapt to changing dynamics and remain prepared for both bullish and bearish scenarios. Patience and discipline are key—profitable opportunities always arise for those who wait for the right moment.
If this analysis has been helpful, please like, follow, and share your thoughts in the comments!
Disclaimer
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