FX.co ★ Analysis of Gold for December 18,.2020 - Broken bullish flag pattern and upside continuation towards $1.895

Our door is open

• Things are looking difficult
• Hopes that EU will see sense, they must come to the table with something
• If they don't, we will trade on WTO terms
• WTO terms may be difficult at first, but we will prosper

If both sides are still unwilling to move, I just don't see how there will be any conclusion in talks from this weekend either.

The transition period deadline is 31 December, so perhaps we may see some political will to work out a compromise by then. However, knowing both sides and how this saga has dragged on, it may not come until the very last minute - quite literally.

Further Development

Analyzing the current trading chart of Gold, I found that there is completed bull flag pattern and potential for the upside continuation.

Imy advice is to watch for buying opportunities on the dips with the upside targets at $1,895 and $1,930.

Additionally, there is the rejection of the middle Bollinger band, which is further sign of continuation.

1-Day relative strength performance Finviz

Based on the graph above I found that on the top of the list we got Ethanol and Lumber today and on the bottom Lean Hogs and Orange Juice.

Key Lvels:

Resistance: $1,895

Support level: $1,877