Current price: 4007
Key point: 3950
Our preferred strategy: Buy positions above 3950 with a first target of 4075 and then a second target of 4150.
Alternative scenario: Stop loss and trend reversal upon breaking the 3895 level, targeting the 3850 level.
Technical commentary
Gold managed to rise from the pivotal support levels of 3895-3950 and from the 200-period moving average on the four-hour timeframe after the sharp decline of the past two weeks.
With the breakout of the downtrend line from the current month's high, and the formation of the SHARK harmonic pattern with a 113% Fibonacci retracement, gold is expected to resume its upward movement to the 4075 level and then to the 4150 level.
