GOLD BREAK support line and FALL

Dec 29, 2020

So, the price continues to move in an upward channel, which formed in late November - early December after the price broke through the support line 1806.93. After the breakout, it touched support 1768.05 and started to rise. As a result, this line of support became the lower border of the channel.

Last week, the price touched it at point 1858.13 and started to rally, but the growth was interrupted in the middle of the channel when the price came to the resistance line 1900.47. This line has existed since August 2020 and, as you remember, it was exactly the basis of the global downtrend. And this time the price also collapsed from this line.

Now the price is within the support line 1871.32, but this time I am sure it will break through it. Since the resistance line from which the price falls is older and stronger than this support line.

Thus, I expect the price to break through the 1875.07 support line, after which it will correct and consolidate on it in the area of ​​1881.23. In this case, you can open a sell trade either immediately after the line breaks out or after waiting for a correction.

As a result, the price will fall to the support line at 1841.58.

Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻