Gold- Bears need to clear 1780

20 בדצמ׳ 2022

In both my written and video analysis from yesterday, I said that a top could be in place for Gold, and, as long as bulls are unable to close above the 1805-1810 zone the odds are in favor of a drop.
Yesterday the market was quiet, with XauUsd trading in a tight range (yes, 150 pips range for Gold is quiet:) ), and, with the trading range tightened at this moment, we have clear levels to watch for future price direction.
On one hand, we have a very clear and well-defined level of support around 1780, given by the ascending trend line and the horizontal level. On the other hand, yesterday's high offers now important resistance.
My favorite scenario remains bearish and, as I said, a break under support would bring confirmation.
Also, in such an instance, considering the distribution and choppy market's price action since the beginning of the month, yellow metal's price could drop hard after, and I don't see real support till the 1720-1725 zone.
As always in trading, nothing is sure, so a daily close above 1810 would negate this bearish scenario.

Best Regards!
Mihai Iacob