In the current gold market, two key zones stand out: 2290-2276 and 2347-2350. If bullish momentum holds and keeps the price above the zone, it could signal an opportunity for opening long trades, with the April high serving as a target.
Conversely, breaking below and consolidating under 2276 could indicate a shift in the trend, presenting an opportunity for selling positions.
Zooming out to the monthly chart reveals a significant bull flag pattern taking shape. The upper boundary of this pattern was breached at 1848.34, signaling a momentum breakout. However, tick volumes have decreased post-breakout, suggesting reduced trading activity and waning investor interest, possibly due to the market reaching historic highs.
Key support levels for gold include 2,087.96, 2,056.98, 2,009.83, 1,973.46, 1,935.07, and 1,918.66. On the other hand, notable resistance levels include 2,137.16, 2,158.13, 2,195.66, 2,237.34, and 2,297.26.
Technical indicators on the H4 and D1 time frames hint at a potential downward correction towards 2,087.96 following the record price high. However, overall sentiment remains positive, with a target set around 2,297.26. Investors are closely monitoring these levels and patterns to inform their trading decisions amidst evolving market dynamics.