Gold has remained relatively stable at the start of European trading on Friday (December 20, 2024), showing no significant changes in the technical levels to watch.
On the 1-hour chart, the price of Gold is observed below the trendline that has formed since December 12. As long as it remains below this trendline, Gold is likely to continue its downward trend.
The $2,620 per troy ounce area acts as a strong resistance. Looking back, this level has repeatedly served as a support that has prevented Gold from declining further. Since being broken on Wednesday, Gold has struggled to reclaim this level, thus it now serves as a robust support become resistance zone.
The Stochastic indicator has moved down after reaching the overbought territory. This suggests a greater potential for decline.
On the 15-minute chart, Stochastic is on the rise and has begun to enter into the overbought region. Should Gold increase within this time frame, it could present favorable selling opportunities with a better risk-reward ratio. This is because, when the 15-minute Stochastic remains in the overbought area for an extended period, there is potential for the price to reverse downwards, while the trend on the hourly chart continues to decline.
As long as Gold stays under $2,620, there is potential for it to drop to around $2,588. If this level is breached, Gold may continue its downward movement towards $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
