Gold can be expected to fall further toward the next support level 3870.00 (which stopped the earlier downward impulse at the start of November).
- Gold reversed from resistance zone
- Likely to fall to support level 3870.00
Gold recently reversed down from the resistance zone between the resistance level 4150.00 (former support from the start of October, as can be seen from the daily Gold chart below), resistance trendline of the daily down channel from September and the 50% Fibonacci correction of the downward impulse from the middle of October. The downward reversal from this resistance zone created the daily Japanese candlesticks reversal pattern Bearish Engulfing, which accelerated the active impulse wave 3 – which belongs to the downward impulse wave c from the end of August.
Given the clear daily downtrend and the bearish sentiment seen across the precious metal markets today as investors price in further Fed rate hikes, Gold can be expected to fall further toward the next support level 3870.00 (which stopped the earlier downward impulse at the start of November).