Powers: $4,103 is Gold's Pivot Level Between Rise and Fall
Bruce Powers writes that gold is testing critical support at $4,103, and that this level will determine whether the next move is a further decline or a rebound from a double bottom.
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Technical analyst Bruce Powers writes that gold is testing a critical support zone at $4,103 per ounce, a level based on a Fibonacci retracement that determines the fate of the next move.
Powers suggests that traders are weighing the likelihood of further decline if this level breaks against the possibility of forming a double bottom and breaking out of a falling wedge if it holds, both of which remain plausible scenarios until the direction is established.
Powers describes the $4,103 level as the pivot point determining the next direction, as breaking it opens the door for a new wave of decline, while holding it provides an opportunity to build a bullish base.
This is a technical analysis and forecast by its author, Bruce Powers, published on FXEmpire, and does not constitute investment advice.
What do these terms mean?
Fibonacci Retracement: A technical analysis tool based on mathematical ratios used to identify potential support and resistance levels following a significant price movement.
Double Bottom: A price pattern formed when the price touches two close low levels twice and bounces between them, interpreted as a signal that the decline has ended.
Falling Wedge: A price pattern in which the lines of movement converge downward; a breakout to the upside is considered a signal of a continuing rally.
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