Bullish Flag Sets Up Next Trigger
A two-day pullback into key trend support has also established a small bullish flag pattern, which would initially trigger on a rally above Tuesday’s high. Strength would then be indicated on a rally above the recent high of $4,399, signaling a continuation of the short-term advance while also reclaiming the 20-day moving average and a declining trendline.
Recovery of these levels would then put gold on track to test resistance near the recent lower swing high of $4,511 and the 200-day moving average near $4,543. Such a move would provide further confirmation that the recent pullback was constructive digestion of gains rather than a reversal of the developing bullish trend.