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Gold: Fall Arrested at Support, What Next?

Long
COMEX:GC1!   Gold Futures
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3
Gold price cracked big time last week and the fall was arrested right at the support zone marked in the chart. Price has since been consolidating and the price action indicates the possibility of a bounce. The immediate level to focus-on is the blue line in the chart.

If the price manages to clear that blue line via a green WRB (with higher volumes) then the scope for a rise to the red line comes into play
Comment: As observed in the previous update, price cleared the blue line and appears headed towards the red line. What is however of concern is the manner in which the upmove is shaping up. Look at the labored rally and buying tails all along. If (the emphasis is on the phrase IF) the price fails at the red line, then expect another round of sharp crack in gold.

Comment: As anticipated, price reaches the target mentioned few days ago. Here is the updated chart of Gold futures.


I am watching what price would do at the resistance / target line mentioned in the above chart. A failure here would push the price to the lower red-dashed lines which are immediate support levels.

Will the price breakout above resistance or plunge through support? I don't know !

Let the price display its intent. We can follow suit later.
Comment: Price fails to clear the resistance line marked in the chart and no wonder it plunged through the support. Here is the updated chart.


I have highlighted the "blue ellipse" zone in other charts too. Those zones represent an area of vacuum and price will zip through them when they are revisited.

Await further updates soon.

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