At the beginning of the year, the price of almost all goods skyrocketed. Houses, metals, food, energy, and pretty much everything. It resulted in massive inflation, which is currently one of the most talked-about topics. The second half of the year brought a minor cooldown in some parts of the market. Metals, energies, and even some crops are down. This, of course, should help combat inflation, but for us, the most important thing is that it brings new trading opportunities.
Gold is currently at its lowest in 2022. July was and continues to be catastrophic for gold. In just a few days, the price broke three critical supports; it all started with a massive Head and Shoulders pattern (yellow) that formed in October 2021.
A few days ago, sellers managed to break the first crucial support, the neckline of this formation (red). The second was the long-term up trendline (navy blue), and the third was a horizontal line on the $1784 level (blue), which had been supporting the price since last December.
As you can see, gold managed to crash all major supports. The only one currently left is at $1680 (green), which now serves as a target. In the short-term, the price may climb higher to test $1784 as a resistance, but in the long-term, sentiment is negative, and the movement towards the green area seems inevitable.
Breaks