GOLD continue to move as part of the correction and the formation of an inverted “Head and Shoulders” reversal pattern. At the time of the publication of the forecast, the price of GOLD is 1821 Dollars per Troy Oz. Moving averages indicate a short-term bearish trend. Prices broke through the area between the signal lines upwards, which indicates pressure from buyers of the asset and a potential continuation of growth from the current levels. At the moment, we should expect an attempt to develop a decline and test the support level near the 1805 area. Where can we expect a rebound and continued growth in the price of GOLD with a potential target above the level of 1895.
XAU/USD Forecast and GOLD analysis February 16, 2021
An additional signal in favor of raising the XAU/USD quotes will be a test of the support line on the relative strength index (RSI). The second signal will be a rebound from the lower border of the Head and Shoulders reversal pattern. Cancellation of the growth option for GOLD prices on February 16, 2021 will be a fall and a breakdown of the level of 1765. This will indicate a breakdown of the support area and a continued fall to the area below the level of 1675. Expect to accelerate the growth of XAU/USD quotes with the breakdown of the resistance area and closing of the price above the level of 1865, which will indicate a breakdown of the “Neck” line of the reversal pattern.
XAU/USD Forecast and GOLD analysis February 16, 2021 implies an attempt to test the support area near the level of 1805. Further, the continued growth of quotations with a target above the level of 1895. Cancellation of the option to raise GOLD prices will be stronger than the fall in the asset value in the markets and a breakdown of the level 1765. This will indicate a breakdown of the support area. In this case, we should expect a continued decline in the price of GOLD with a potential target below the level of 1675.
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