As stated to our members last night, gold violated its rising uptrend yesterday. This highlights the difference between technical analysis that's always built around 'reaction lows' or 'reaction highs' as those can be difficult to anticipate in runaway markets. Notice how we severed the trend line, then recaptured. Price action should always play a role in this form of analysis as the break was followed by a retracement that had no follow through and broke support again.
Next we have the 4 hr chart, where we can view the trend line supporting the market back to 1794. On the way up, we had some areas of support where the market reacted and may very well act as support again. No one knows that they will act as support- these are just areas that market followers will observe and measure the kind of reaction that takes place to determine how they will participate. Others will simply wait for a break of the declining trend line at the top of the move.
Next we have the 4 hr chart, where we can view the trend line supporting the market back to 1794. On the way up, we had some areas of support where the market reacted and may very well act as support again. No one knows that they will act as support- these are just areas that market followers will observe and measure the kind of reaction that takes place to determine how they will participate. Others will simply wait for a break of the declining trend line at the top of the move.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.