Gold Price Forecast: XAU Continues to Consolidate as a Bearish Signal for the Week Approaches
Gold Price Forecast: XAU Continues to Consolidate as a Bearish Signal for the Week Approaches
Weekly bearish shooting stars pattern favors sellers. Bearish retreat might deepen when pattern triggers under $3,265.
Friday saw gold cling near weekly support at $3,260. Outside day high was $3,371 and low was $3,265. After rallying over yesterday’s high, the price fell below yesterday’s low, which is bearish. It follows Tuesday’s bearish shooting star candlestick reversal. Gold will lose for the day and is now trading in the bottom part of its trading range.
Weekly bearish flying star candle
A week-long bearish shooting stars candlestick pattern will end this week. The trigger must be a drop below the week’s low of $3,260. Since gold is above a major support zone and this week’s range is large, from $3,260 to $3,500, there may be further consolidation before a collapse.
The weekly shooting candle followed a daily shooting star candle that indicated the trend peak, which is fascinating. Bearish confirmation of the weekly time period might lead to further aggressive selling as the two candles symbolize the market’s fractal structure.
MA Marks Key Level 20-Day
Support may begin around the 50% retracement level at $3,228 and the April 16 low. If the weekly pattern triggers, that price area will likely be removed as further indication that gold has achieved a high. Whether it causes a protracted or short bearish downturn is unknown.
A crucial trend signal is the 20-The day MA. It’s currently $3,195 after rising. Since the 20-The day line was regained on the seventh of January, pullbacks have struggled to establish support until trading below the line. Similar things might happen in the next approach.
Lower Goal at 78.6% Retracement
Below the 20-Day line, a trend high and the 61.8% retracement of Fibonacci at $3,168 and $3,164 may provide support. But a drop below that level would send gold to $3,073, the 78.6% Fibonacci retracement.
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