Gold: early signs of an uptrend?
Have a look at the daily chart below. At the first sight, gold has been in a downtrend since summer 2020. However, since it dropped to 1 765, it never continued the downtrend in an equally distributed channel that's been there since July till November. Instead, while the resistance stayed at 1 960, the lows have not gone downwards so far. So, does it mean we are now at the bottom of the uptrend that will push the price back up to 1 960 and above? That's a possibility to be verified with time. Therefore, here are your tactical scenarios.
Scenario 1: sideways
The price may reach local highs around 1 900 by the end of January, then it goes downwards below 1 800 again to possibly reach 1 765 again in the middle of February; after that, it may revert to the upside again. Eventually, it may come to 1 960 by the end of February.
Scenario 2: uptrend
The gold price is now right after a newly formed low; it will go upwards to test the resistance of 1 960 in the first days of February.
