(Kitco News) - Gold futures have had a mixed week but the precious metal is stuck in a range between $1919 and $1885.4 per ounce. The 4-hour chart below shows that the main downward sloping trendline (in orange) has been broken to the upside but there has not been much upside momentum since. What is good for the bulls is that the black flag type pattern is still intact and the bottom of the pattern is looking like a decent support zone. The volume is also getting thinner and this is notable as the price moves lower. This could mean there is not too much backing for prices at lower levels.
The bulls should only be majorly concerned if the main wave low support marked in red is taken out to the downside ($1851.1). In the near term, the support level to watch is the blue line under the price at $1885.4. On the topside, there are two resistances to look out for, the first is the purple line at $1916 and the second is the green wave high of $1939.4 per ounce.
If the resistance zones do get broken the traffic is not over as $1976 also looks firm followed by the psychological $2K level. Longer-term, the yellow metal is still in a firm bull trend but it is hard to work out if this is just a stubborn deep retracement or a reversal. My guess would be a retracement for now, but the aforementioned levels would need to be looked upon leading to to the US election and beyond for clarity.
