GOLD - Bull Break | EMA Support | Key .618 Fibonacci Level

Hello Traders!

Today’s chart update will be on GOLD, which is testing a key Fibonacci level that must break for a bull trend continuation.

Points to consider,
- Trend bullish
- Major resistance - .618 Fibonacci
- Local support at $1367
- Stochastics projected up
- RSI hitting resistance

GOLD is in a bull market after breaking its key neckline on its long formed inverse head and shoulders. It has been putting in consecutive higher lows from lower levels when coming into the neckline.

Major resistance, the .618 Fibonacci needs to break to keep a bullish bias; historic price action tells us that this is a staunched level for Gold. Local support is around $1367; Gold can retrace back and retest this level whilst still maintaining a bullish structure.

The stochastics is currently projected up, still room for further upside momentum, no clear signs of topping out as of yet. RSI is hitting resistance, coming out of overbought territory; a retrace back to neutral levels is highly probable.

Overall, in my opinion, Gold needs to break the .618 Fibonacci level to avoid a double top formation, otherwise a retest of the neck line is highly probable.
What are your thoughts?

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And remember,

“Amateurs think about how much money they can make. Professionals think about how much money they could lose.” – Jack Schwager