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2026-07-17 13:22:14
[Technical Analysis: Spot Gold May Break Below $3970 Support Level] 1. Spot gold may retest the $3970 support level per ounce. A decisive break below this level could open up further downside potential, targeting the $3915-$3931 range. 2. This target range is suggested by the lower trendline of the descending channel. The downtrend that began at the $4202 high has formed a complex wave pattern, presumably a double zigzag correction structure. However, an alternative wave count exists—a five-wave decline cycle. The difference between these two counts lies in the market's differing expectations for the current rebound strength. 3. If the market is executing a five-wave structure, the rebound could be stronger, potentially extending to around $4095. If it's a double zigzag structure, the rebound strength would be relatively limited, possibly confined to the $4000-$4026 range. 4. The daily chart shows that gold is preparing to break below the $3965 support level. A break below this level could lead to a further decline to $3746, consistent with the large bearish candlestick signal from the previous trading day.
