Current price: 4125
Key point: 4045
Our preferred strategy: Buy positions above 4045 with a first target of 4185 and then a second target of 4270.
Alternative scenario: Stop loss and trend reversal upon breaking the 4015 level, targeting the 3930 level.
Technical commentary
Gold rose from the pivotal support levels of 3895-3915 and from the 200-period moving average on the four-hour timeframe. It also rebounded from the SHARK harmonic pattern with a 113% Fibonacci retracement level.
The key level for the breakout was 4045, and if this level is breached, gold is expected to reach the resistance levels of 4155-4185. If these levels are broken upwards, the price will then reach the 4275 level.
