Resistance Zone Defined

The $4,079 area gains strength as resistance from the nearby top rising channel line and falling 10-day average. The 10-day is converging with the 20-day after touching the channel line today. Once below the 20-day, it becomes key short-term resistance. Monday’s $4,109 high and last Friday’s $4,144 high cap the zone.

Breakdown Context

Gold fell below the 20-day average on Monday, closing under it for the first time since August 22’s reclaim. No swing back to test it as resistance has occurred yet. Yesterday’s attempt met quick pushback. A more substantial advance into the zone could precede further bearish pullback or consolidation.

Lower Support Targets

The next lower target is the 50% retracement at $3,846 and 50-day average at $3,808, rising. The 50% level is bolstered by a prior three-day sideways move that acted as resistance, now potential support. Convergence of the 50-day and 50% retracement may hint at timing — watch when they align.

Outlook

The close near $4,027 is key — above it targets $4,079, below risks $3,918. The 20-day and channel line cap rebounds, but a test there could set up deeper pullback to $3,846. Monitor 50-day convergence for support clues — today’s strength favors buyers short-term if resistance holds.

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