Shooting star on Gold's chart: Sign of bearish reversal ahead?
|On Thursday, we witnessed some remarkable moves on gold who is currently experiencing high volatility. Today's candle could be crucial in setting the sentiment for the upcoming days and weeks. Sellers have a huge chance to initiate a bigger bearish reversal - let's see how they play this one.
During today's Asian session, gold spiked and managed to set new long-term highs, coming close to the round barrier of 2080 USD/oz. The price was, however, quickly rejected and the area (lavender) remains a key resistance level, established by the top from March 2022 and 2023. Currently, the daily candle is shaped like a shooting star with a very long head. This type of candle with this type of resistance has a big chance to start a bearish reversal. Sellers should fight to close this candle at or near the current levels, or possibly even slightly lower.
In case we do get a proper shooting star, where should we expect a legitimate target for this drop? The first idea would be the 23.6% Fibonacci retracement level which also happens to be the low from the second half of March. I would say that this is the minimum target and there are high chances of seeing it in the next days and weeks.
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