Technical analysis by TraderFa9ir about Symbol PAXG: Sell recommendation (6/23/2024)

Current Price and Trend: Gold is trading around $2,321.87. The price is moving within a rising channel, suggesting a bullish trend. Support and Resistance Levels: Support Levels: $2,300: Psychological support level. $2,286.83: Key support zone indicated by the green box. Resistance Levels: $2,338.78: Immediate resistance. $2,399.70 - $2,450.13: Strong resistance zone highlighted in red. Technical Indicators: The price recently tested the upper boundary of the channel and has pulled back. The moving average (yellow line) is acting as dynamic support. Fibonacci Retracement: The Fibonacci retracement levels of 127% ($2,291.49) and 138% ($2,284.83) are key levels to watch for potential bounce-backs. Projected Movement: If the price breaks below the current support levels around $2,286.83, it may test lower Fibonacci levels at 161.8% ($2,270.41) and 175% ($2,262.42). Conversely, a bounce from current levels could see the price testing the upper resistance zones again. Impact of New Dollar News: Stronger Dollar Impact: Recent news indicates a stronger dollar, which typically puts pressure on gold prices . If dollar strength continues, gold might break below the key support levels and head towards the lower Fibonacci retracement levels. Weaker Economic Data: Recent weaker-than-expected NFP and ISM services PMI data may limit the dollar's strength, potentially supporting gold prices in the short term . Conclusion: Bullish Scenario: If gold holds above the support levels and the dollar weakens, expect a potential move towards the $2,338.78 resistance. Bearish Scenario: If gold breaks below $2,286.83 due to dollar strength, expect further declines towards $2,270.41 or lower.