As forecast, the yellow metal’s price has once again approached and tested the resistance of the 1,790.00 level. Namely, the price bounced off the resistance even before it approached it. During the early hours of Wednesday’s trading, the price had retraced to the support of the 55-hour simple moving average.
In the near term future, the price was either going to do another test of the resistance of the 1,790.00 level or decline below the 55-hour SMA.
In the case of a surge to the 1,790.00 level, the resistance could hold and force the metal into trading sideways. On the other hand, a passing of the 1,790.00 level would most likely encounter resistance at the 1,800.00 level.
If the metal’s price declines below the 55-hour SMA, the 100-hour SMA could provide technical support. Both SMAs failing at providing support could result in a decline to the 1,765.00 level, which reversed Monday’s drop.
