RLinda ! GOLD-> Difficult situation - support retest

17 Jan 2023

Gold hit a high of 1929 and the price stopped in that zone. At the moment, the instrument has weakened by 1.0%, being in the phase of a technical pullback.

The price is testing the key 1912 zone (channel resistance). A classic situation in an uptrend is a false breakout of support on a pullback. This maneuver is necessary to capture liquidity, which can push the price further. But at the same time the difficulty is that a consolidation below the same level could push the price down.

If you assume that the price is going down now, it is worth using this fact to sell, but in the current situation it is worth reducing the losses, because the bulls might not allow the price to go down deeply. It is worth controlling the price and closing positions on the 1912 retest.
The next consolidation above 1912 could send the price up under a strong buyer.

Regards R. Linda!