Gold creates small bullish correction
08 February 2023
Last week was pretty terrible for Gold. It started out great when the price made new, long-term highs but the second half brought a huge drop, which actually managed to retrace the rise from almost the whole of January. The question for this week was whether buyers can manage to easily shrug that off and continue the upswing or not - and that was the start of a new bearish trend.
The answer to that is somewhere in the middle. We got neither a decisive bullish reversal, nor a further slide south. The price created a small correction shaped like a flag (black lines) which is just above the lower line of the channel-up formation and was dominating the trading on gold since November 2022.
The flag that we can see is a rather bearish sign. It is a trend continuation pattern and the trend before it was created was bearish. This kind of setup promotes a further slide to the new minimums. To be more certain about this, we have to see the price closing a day below the lower line of the flag. As long as the price stays above it, buyers can still have hope.