12.05.202215:03 Forex Analysis & Reviews: Trading plan for Gold on May 12, 2022

Technical outlook:

Gold prices rallied through $1,858 in the early hours on Thursday before pulling back. The yellow metal seems to have found support at just around $1,840 in the past hour and is expected to resume its rally soon. Bulls are looking poised to push through $1,892 in the near term and hold prices above the $1,832 interim support.

Gold has carved a meaningful lower degree upswing between $1,832 and $1,858 as seen on the 4H chart here. Furthermore, the yellow metal has retraced lower through the $1,840 mark as well, which is the Fibonacci 0.618 retracement of the above rally (not shown here). If the above structure holds well, bulls would resume higher anytime soon.

Gold prices are ready to retrace to a larger-degree downswing between $1,998 and $1,832. The Fibonacci 0.618 retracement of the above drop is passing through the $1,935 mark as presented on the chart. The high probability remains for bears to come back in control if prices manage to push through the $1,935-40 zone going forward.

Trading plan:

Potential rally towards $1,892 and $1,935 against $1,830

Good luck!