On the 4H chart, the price of Gold has been forming a potential up trend channel. Recently it did a sharp jump to over 2400 which was a false breakout of the channel followed by a sharp drop. The price can drop further to around 2315 - 2290 where it ca test the previous support range. If this happens in the next few days, the support range can align with the general up trend support of the channel and the 0.5 Fib level giving more confluence.
What gives even more confirmation of a possible further drop before another increase is that the RSI and the MACD both formed Divergence recently. If the price drops to the specified levels, it can find a strong support from where it can reverse to the up side again and test the resistance range around 2400+ created from the previous major high point
What gives even more confirmation of a possible further drop before another increase is that the RSI and the MACD both formed Divergence recently. If the price drops to the specified levels, it can find a strong support from where it can reverse to the up side again and test the resistance range around 2400+ created from the previous major high point