Well, the bulls certainly weren't planning to sit quietly through Wednesday's session!
After several days of bearish pressure, buyers have launched impressive counterattacks across the metals market.
Gold has pushed through resistance barriers that seemed particularly difficult to overcome just yesterday and platinum has reached another downside target we highlighted in advance - before staging a powerful recovery of its own.
Two markets, two different technical stories, but both are now asking essentially the same question:
Can buyers turn their latest rebounds into confirmed recoveries?
That's particularly interesting because several of today's bullish advances are approaching barriers whose earlier breakdowns helped sellers take control.
And those barriers aren't going to disappear simply because the latest candles look encouraging.
Let's examine what buyers have accomplished and what they still need to prove.
Gold (GC.F) - The Bulls Strike Back. Is 4222 Their Next Destination?
Well, that escalated quickly!
Remember yesterday's test of the red falling wedge's broken upper boundary? Buyers managed to defend the earlier bullish breakout on a daily closing basis, suggesting that Tuesday's decline was a verification of that development rather than its invalidation.
And Wednesday?
The bulls have returned with considerably more determination.
Supported by a weakening U.S. dollar, gold buyers launched a powerful counterattack, pushing prices through Friday's bearish gap at 4024-4031 and above the lower boundary of the black declining channel, but… they didn't stop there.
The rally also carried gold above the upper boundary of the orange consolidation formed around Friday's substantial bearish candle. That's an encouraging combination!
And there's another detail worth remembering.
Earlier today, gold briefly reached 3928.35, testing the neighborhood of the long-term green rising support line, which runs near 3930 on the weekly chart. Therefore, the subsequent recovery makes today's bullish response particularly interesting.
However, we still need a daily close above the broken resistance barriers - especially the orange consolidation's upper boundary near 4038 - to confirm the latest bullish achievements.
And what if buyers succeed?
Then things could become considerably more interesting. Our charts reveal an important resistance cluster around 4190-4222, where four technical elements converge.
The first is the upper boundary of the black declining channel. The second is the 38.2% Fibonacci retracement of the decline that began in late August. The remaining two are minimum upside projections derived from the height of the orange consolidation and the earlier red falling wedge.
Four technical arguments. One potential destination.
And the indicators are beginning to cooperate, too. Fresh buy signals from RSI, Stochastic, and CCI provide additional support for the recovery attempt.
Does that guarantee a rally toward 4222?
Of course not, but a confirmed daily close above 4038 would strengthen the argument for a continuation toward the 4190-4222 resistance combination.
What could spoil the bulls' plans?
A daily close back beneath the red wedge's broken upper boundary would invalidate the earlier breakout and undermine the recovery.
Such weakness would also threaten the long-term weekly green support line near 3930, although a confirmed breakdown beneath that dynamic line would require a completed weekly close.
For now, though, buyers have done something they couldn't accomplish yesterday - they've moved beyond defending support and started reclaiming resistance.
Daily Takeaways: a daily close above 4038 would strengthen the bullish scenario and bring 4190-4222 into focus. The red wedge's broken upper boundary and long-term weekly support near 3930 remain crucial to preserving the recovery.
Bottom Line: Gold's rebound has gained momentum, with four technical measurements pointing toward the same upside area. But today's close must confirm the bulls' latest accomplishments.
Platinum (PL.F) - Another Target Reached. Now the Bulls Fight Back!
Let’s begin this section with the quote from yesterday's Premium Lab Note:
“(...) the next daily Fibonacci objective near 1409 is already within reach of recent price action, followed by the important 1392.70-1400 support combination.”
Well, the bears have just delivered another interesting result!
Tuesday's buyers failed to reclaim even the previously broken 127.2% Fibonacci extension near 1446.41 and Wednesday's sellers took full advantage.
The session opened with a fresh bearish gap at 1420-1430, followed by another decline that pushed platinum to 1388.90 - not only reaching our next downside target zone but briefly slipping below the weekly 61.8% Fibonacci retracement near 1392.70.
And that's where the story took an interesting turn.
Buyers finally launched a meaningful counterattack, recovering the Fibonacci extensions near 1410.79 and 1446.41, moving through today's bearish gap, and challenging the lower boundary of the red declining channel. That's quite a comeback!
However, there's still one crucial question: can the bulls turn this intraday recovery into a confirmed breakout?
The channel's lower boundary currently sits near 1468.35. A daily close above that dynamic resistance would invalidate Friday's channel breakdown and provide a strong bullish signal.
Such a development could open the way toward Friday's bearish gap at 1483-1493, followed by the psychological 1500 barrier, July's low, and potentially last week's bearish gaps.
Encouragingly, daily Stochastic and RSI have already generated buy signals, adding support to the recovery attempt.
And what if buyers fail to secure that closing confirmation?
A daily close beneath the red channel's lower boundary would leave the earlier breakdown intact and raise the possibility that today's impressive rally was merely a verification of broken support, which now acts as resistance.
For now, platinum has delivered another previously anticipated downside objective and an impressive bullish response.
Whether that response marks the beginning of a larger recovery or just another temporary rebound is a question for today's closing bell.
Daily Takeaways: the 1392.70-1400 support area has been reached, triggering a strong rebound. A daily close above 1468.35 would invalidate Friday's channel breakdown and favor a recovery toward 1483-1493, followed by 1500. Failure to reclaim the channel would keep the bearish scenario alive.
Bottom Line: the bulls have finally shown they can fight back. Now they must prove they can reclaim the broken channel - not merely test it.
What About the Dollar, Silver, Palladium, and Copper?
Gold and platinum aren't the only markets delivering interesting technical developments today.
The U.S. dollar has suffered another bearish attack, undermining its potential double-bottom scenario and testing an important support combination. Can buyers defend that area, or is another breakdown approaching?
Silver has finally produced a meaningful bullish counterattack after another test of its triangle support. But Friday's bearish gap is standing directly in the buyers' path, and the next daily close could make all the difference.
Palladium has delivered an impressive recovery after sellers failed to reach the next weekly Fibonacci objective. Buyers have already challenged two bearish gaps, bringing another important psychological barrier into focus.
And copper has reached yet another downside target we identified in earlier Labs. Its subsequent rebound has created an interesting technical standoff, with important support beneath the market and significant resistance overhead.
Which side is likely to gain the advantage next?
In today's complete Anna's Trading Lab Premium, we examine these four additional markets, connect the latest price action with our earlier scenarios, and identify the levels and closing confirmations that could determine their next moves.
If you'd like to follow all six market stories and explore the complete technical picture, I invite you to sign up for the free trial today. And if you're not yet receiving our free gold market updates, you're welcome to join our free gold mailing list, too.
Final Thought - A Strong Rebound Still Needs Confirmation
There's something particularly valuable about watching markets respond to previously identified technical levels.
Sometimes support gives way, sometimes it triggers an impressive comeback and sometimes both happen during the very same session.
However, one thing remains constant.
Reaching a target doesn't automatically signal a reversal, just as reaching resistance doesn't automatically confirm a breakout.
That's why we follow the evidence rather than assume the next move.
And with several markets approaching important technical barriers today, the next closing prices could give us plenty to think about.
Anna