• Gold reversed from resistance zone
• Likely to fall to support level 1805.00
Gold recently reversed down from the resistance zone lying between key resistance level 1834.00 (which has been reversing the price from the start of July), upper daily Bollinger Band and the 61.8% Fibonacci correction of the downward ABC correction from May. The downward reversal from this resistance zone stopped the previous the intermediate upward impulse wave (3) from the end of August.
Given the overbought reading on the daily Stochastic indicator and the strength of the nearby resistance zone – Gold can be expected to fall toward the next support level 1805.00 (former resistance from August which stopped the previous impulse wave (1)).