FX.co - Analysis of Gold for May 20,.2021 - Breakout of rising channel and potential for drop towards $1.852

2021-05-20T12:12:38

Relevance until2021-05-22

Technical analysis:

Analysis of Gold for May 20,.2021 - Breakout of rising channel and potential for drop towards $1.852

Gold has been trading sideways at the price of $1.872. There is potential for the bigger drop due to the breakout of the rising channel.

Trading recommendation:

Watch for potential selling opportunities on the rallies with the downside targets at $1.862 and $1.852.

Stochastic is showing neutral position and contraction, which is sign to watch for the breakout.

I projected downside Fibonacci and got FE 61.8% at $1.862 and FE 100% at $1.852.

Resistance set at $1.879

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade

Analytical expert

Petar Jacimovic

FX.co ★ Analysis of Gold for May 20,.2021 - Breakout of rising channel and potential for drop towards $1.852