Gold prices are currently navigating a confined sideways range, and upon closer examination of the chart, a discernible inverted head and shoulders pattern is taking shape. The confirmation line for this pattern is positioned at 2039.65. A breach of this level is anticipated to activate the positive implications of the pattern, propelling the price to achieve gains commencing at 2065.70 and extending to 2095.00.
Consequently, the bullish trend scenario remains valid and active for the forthcoming period, with additional support derived from the Exponential Moving Average 50 (EMA50). It is imperative to bear in mind that a breach of the support level at 2016.90 could subject the price to additional corrective bearish pressure, with the subsequent target set at 1977.46.
For today’s trading activities, the projected range is expected to fluctuate between the support level at 2015.00 and the resistance at 2050.00. The prevailing trend for today maintains a bullish outlook, underpinned by the formation of the positive pattern and the support from the EMA50.
Market participants are advised to monitor the crucial levels of 2016.90 and 2039.65 for potential signals of the market direction. A successful breach of the confirmation line could lead to further upside movements, while a break below the support level may trigger corrective bearish pressures.
