At the beginning of the American session, gold is trading at 1,864, just below the symmetrical triangle and above SMA of 21 located at 1,861. A correction is expected in the next few hours towards the support of 6/8 of murray located at 1,843.
Gold is trading within a symmetrical triangle. It is expected to trade within this technical pattern in the coming days. The range zone is getting tighter. Now its upper and lower borders are seen between 1,867 and 1,853.
As long as gold remains below SMA 21 (1,861), there is a possibility of a correction towards the zone of 7/8 murray. The eagle indicator is showing a bearish signal and could confirm our technical correction outlook for the next few hours.
A consolidation and a break below the symmetrical triangle could be the start of a new bearish movement and we could expect a decline until 1,843. If bearish pressure persists, the yellow metal could reach 1,810,43 around the 200 EMA.
Our trading plan for the next few hours is to sell below 1,870 and buy around 1,853. A sharp break above or below the symmetric triangle pattern could determine the gold trend for the next few days. For this, we should wait for a confirmation with the daily close below 1,850 or above 1,870.
According to the 4-hour chart, the main trend is bullish. A correction to 6/8 murray can encourage a further bullish momentum. On the other hand, if the metal falls to the 200 EMA, it could be seen as an opportunity to buy in the short term.
If in the next few hours we see that gold is breaking the 21-day moving average and consolidates below 1,860, it will be a clear signal for us to sell with targets at 1,843. So, the price could reach 1,812 in the next few days.
Support and Resistance Levels for November 18 - 19, 2021
Resistance (3) 1,884
Resistance (2) 1,879
Resistance (1) 1,873
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Support (1) 1,855
Support (2) 1,845
Support (3) 1,836
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A trading tip for GOLD for November 18 - 19, 2021
Sell below 1,850 (symmetrical triangle) with take profit at 1,843 (7/8) and 1,810 (EMA 200) stop loss above 1,857.
The material has been provided by InstaForex Company - www.instaforex.com