Current price: 4128
Key point: 4000
Our preferred direction: Buy positions above the 4000 levels, targeting 4200 as the first target, then 4350 as the second target.
Alternative scenario: Stop loss and change direction by breaking the 3980 level, targeting the 3900 level.
Technical commentary
After Tuesday's significant drop and breakout of strong support levels, gold has reached very favorable areas for upside. It reached the 4,000 support level and stabilized above the 4,050 level, above the rising trend line from last August's low.
Gold is expected to rise again to the 4200 levels, and if it breaks above it, it will head to the 4350 levels.
