Bullish Reversal Signal Triggers in Gold Price
Despite ongoing downward pressure on gold prices, a one-day bullish reversal signal was triggered on Friday, resulting in higher daily lows and highs. The spot gold daily chart shows that resistance was seen at the 50-day moving average.
A rally above Wednesday's high of $4,369 would indicate further strength and a reclaim of the 20-day moving average. However, if gold does not first fall below $4,235, it could signal a double bottom bullish reversal on a rally above the recent high of $4,400.
The weekly breakout threshold is above this week's high of $4,383, which would also confirm the higher swing low (C). An initial key upside target from a rising ABCD pattern would be at $4,973, reinforced by the 61.8% Fibonacci retracement of the prior decline.
On the downside, potential support levels remain at the lower swing high of $4,203 and the 78.6% Fibonacci retracement at $4,117.