Monday had the yellow metal modestly recover to a session high of 1610.9, though wrapped up the day pretty much unchanged after fading highs into US hours.
H4 price is seen trading back beneath February’s opening level at 1593.0, after fleeting moves north of the base yesterday. Trend line support, taken from the low 1536.0 is fixed as the next downside target on the H4 timeframe. Beyond this level, though, we can see Quasimodo support at 1540.0, followed by support at 1526.8. Also of interest is the relative strength index (RSI) recently exiting oversold ground, modestly gaining off lows at 25.66.
The weekly timeframe reveals last week concluded in the shape of a bearish outside candle pattern, capped by resistance at 1667.3, and shed more than $55 by the close. Trend line support, drawn from the low 1269.6, along with support plotted at 1536.9, represent potential downside targets on this timeframe. A break of the said levels has support at 1452.9 to target.
On the daily timeframe, support at 1550.3 is seen as a possible floor in this market, with a break highlighting support nearby at 1518.0. Resistance remains at 1635.6, and you will note the 200-day SMA has drifted north since early 2019.
The green area marked on the H4 timeframe between 1526.8/1540.0 represents a potential support zone. Although the outer perimeters form by way of H4 supports, within holds the weekly support level mentioned above at 1536.9 and the converging trend line support. Despite the confluence, a fakeout through the area to daily support at 1518.0 may occur, which, as you can see, fuses with January’s opening level at 1517.7.
Traders are also urged to pencil in the possibility of daily support at 1550.3 holding price higher this week.
Disclaimer: The information contained in this material is intended for general advice only.