Near-term Support at 2,168
Near-term support is at today’s low of 2,168. If it is busted to the downside the chance for a deeper retracement from the 2,212 high increases. However, the 2,157 area may still offer support. If it does and leads to a bullish reversal, further upside may be forthcoming. Moreover, if the 2,157 level is busted to the downside, a deeper retracement is likely in the works and the bullish wedge is at risk of failure.
Upside Targets
Price behavior following the bullish wedge has not been as strong as it might be as upward momentum ended after less than two days. Nevertheless, strength starts to return, as noted above, upon a daily close above 2,181, and further still on a close above the three-day high of 2,186. Initial upside targets are highlighted on the chart and are defined by Fibonacci confluence. That is where two or more Fibonacci levels identify a similar price area. The first is from 2,235 to 2,246 and the second is from 2,277 to 2,298.
Further, the high end of the range at 2,298 is where a rising ABCD pattern reflects symmetry. That is where the price change in the CD leg of the advance reflects symmetry with the AB leg. It marks a potential pivot level.
Wedge Targets 2,320
A higher and more significant target is derived from the measuring objective of the bullish wedge. Notice that prior to the wedge forming off the March 8 high gold advanced by 211 points or 10.6% in 17 trading days. However, momentum truly ramped up starting from February 29. When using that low to high measure the advance comes in at 167 points or 8.2%. That calculation presents a 2,320 target.
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