On the hourly chart, the price of Gold appears to be trading below the trendline established since December 12. As long as it remains beneath this trendline, there is a possibility that Gold will continue to drop.
The area around $2,620 per troy ounce serves as a significant resistance level. Looking back, this range has often acted as support that has prevented further declines in Gold’s price. Since breaking below on Wednesday, Gold has failed to reclaim this level, emphasizing its strong position as resistance.
The Stochastic indicator is also trending upwards and is nearing the overbought territory. As it approaches resistance, the Stochastic could reach the overbought area, increasing the likelihood of a reversal.
On the 15-minute chart, the Stochastic has already entered the overbought zone, raising the potential for a price drop.
As long as it remains below $2,620, there is a possibility for Gold to decrease to around $2,588. If this level is breached, Gold could potentially fall to $2,580.
Technical References: sell while below $2,620
Potential Take Profit 1: $2,588
Potential Take Profit 2: $2,580
Potential Stop Loss 1: $2,620
Potential Stop Loss 2: $2,629
