Gold prices continue to slide yet another time around $1,872 on Thursday before finding support. A bullish engulfing candlestick pattern is produced on 4H chart indicting a potential reversal. If the structure holds well, bulls will be poised to push prices higher at least towards $1,960 mark before giving in to bears again.
Gold prices have managed to carve a meaningful downswing between $1,998 and $1,872 levels as seen on the chart. Ideally, the above drop should be retraced before the down trend resmes. Please note that $1,960 is close to fibonacci 0.618 retracement of the above drop and hence high probability remains for a bearish reversal.
Gold prices have also managed to take out initial support around $1,880 as labelled on the chart here. Hence a pullback can be expected from here if not a bullish reversal. Immediate resistance is seen around $1,910-11 mark and a break higher will confirm that bulls are back in control and are here to stay for long.
Trading plan:Potential pullback rally towards $1,960 against $1,872
Good luck!