The yellow metal’s price found support in the 200-hour simple moving average and started a surge. Note that the surge is captured by the borders of a channel up pattern. In addition, note that by the middle of Friday’s trading, the metal had passed the resistance of the 55 and 100-hour simple moving average.
In the case of the pattern holding, the metal would test the resistance of the 1,845.00 level during the first couple of sessions of the next week. If this level fails, the rate could soon test the resistance of the 1,850.00 level and afterwards the February high at 1,855.00.
If the channel fails, the future depends on which trend line is broken. A breaking of the resistance line would result in a more early test of the mentioned resistance levels. On the other hand, a breaking of the lower trend line could look for support in the 200-hour SMA.
