Gold tests the bottom support of the range

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Gold has recently formed a head and shoulders top reversal pattern at a high level, and successfully formed a reversal and decline. The market's upward momentum began to weaken and continued to fall, currently testing the bottom support of the range.

Neckline and support level:
The key support area is located at $2,880. This support line can also be regarded as a neckline, and breaking this support level will further confirm the downward trend of the market.
At present, the price of gold has fallen below this support line, which means that the price may continue to fall, and the target may be close to the $2,860 line.

Downward channel: As can be seen from the figure, the price of gold is in a downward channel. This shows that the price is forming a downward trend. After breaking the lower track of the channel, the price may continue to fall.

Short-term goal:

If the price of gold continues to fall, it may test the support level of $2,880 in the short term. If it fails, it may fall further to $2,860.
In the process of price decline, investors should pay close attention to possible rebound opportunities. If the price rebounds to $2,920 or $2,950, these areas may become resistance levels.

In summary, the gold market presents obvious downside risks, and investors should be wary of the possibility of further price declines. It is necessary to pay attention to the breakthrough of the $2,880 support level. If the support is broken, the gold price may fall further.

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Transaction en cours

The key support level that gold is currently facing is around $2,880, and whether it will form a bottom reversal is still unknown. In the short term, the price of gold may encounter certain support near $2,880, but whether it can achieve a reversal depends on whether the price can effectively break through the upper pressure zone. The current short-term resistance level is at $2,890. If the price rebounds to this level and fails to break through, then $2,880 can be considered to have initially formed a downward stabilization support.
If gold is to achieve an effective reversal, it must stand firm near $2,905, and this level will become an important technical point to confirm the reversal. If the price can effectively break through $2,905 and keep going up, it may usher in a more obvious reversal. However, considering that gold has experienced a large drop of $52 today, continuing to chase shorts is not an ideal choice. The short-term operation strategy should focus on rebounds to avoid the risk of chasing shorts after excessive declines.
For investors who have short positions, they can pay attention to the rebound in the $2,900-2,905 area. If the price fails to effectively break through this area and reverse downward, you can consider participating in short positions in this range and wait for the price to fall further. In the current market environment, remaining cautious and responding flexibly to short-term fluctuations will be a more prudent operating strategy.