After retesting weekly support starting in the 1,286, the precious metal confirmed support again on the 4-hour chart.
Gold after testing successfully that level at the end of March, beginning of April, and offering a free risk trade into the 1,333 area of resistance that was identified well in advance, precipitated (literally) into the area of support at 1,286 again (and hitting stops at 1,2897 for a small gain).
When dust has settled, after that long emotional move lower and tail 4-hour bar, program trading went back in control. This is shown by a well-formed sequence of measured moves starting from the 1,307 high and anchor of 4/16.
The last measured move of that sequence failed yesterday 4/23 when price climbed above 1,288.50. That was the sign that participants on the long side from the support area were strong enough to break the back of the bears.
I think shorts are done for now in this market, which could potentially be entered at current price (below 1,288.5 at the time of writing), with a stop below recent low 1,276) — always mind your risk 😉
There is now the potential to see this market again at 1,303 and higher.
I discussed the concepts used above in my webinar at FXStreet titled: “FibStalking: A Timing Technique to Test Support and Resistance” webinar, follow the link below. As soon as I will get the link to the recording I will share it with you.