Spot gold penetrated short-term support at $1800/ounce and is testing the medium-term level at $1750. Compare the two declines in the current triangle/consolidation, however, and buying pressure (accumulation) is evident. It took two days for price to fall to $1750 during August, with two strong red candles one below the other. On the second downward leg, candle bodies often overlap and it has taken more than two weeks to reach the same target. Recovery above $1830 would signal another test of $1900 and confirm the bullish ascending triangle. Failure of support at $1750, however, would complete a double top, warning of a correction to $1600*.
* Target calculation: 1900 + ( 1900 – 1700 ) = 2100 and 1750 – ( 1900 – 1750 ) = 1600
Totally Agree.. the pull back be after 1700 before testing 1600 is a good buy again