Bears Heed Retesting of 1640: Never Wrong To Bide Your Time
Understandably, gold bears or bulls have been equally plagued by a baffling sentiment behind gold most of this week. Too bad it looks as though the last trading day for the week still spares us no mercy!
The economic updates this evening barely moved the needle in either direction.
What to Expect Now?
Amidst the mind boggling price behaviours of gold, if you are looking to emerge out of this game with some clearheadedness and a more definitive trading plan for the days ahead, observe if gold is to retest 1640 and actually break below this support level with subsequent responsive trading that pressures gold further down.
In my previous post, 1640s was identified as a fake breakout below the fair value range of 1660-1680. In the same time however, it also established an important support that coincides with the lower H4 support line just below the control price of the falling channel. Trades entered anywhere between 1640 and 1660 come with poor RRRs. No harm biding your time to simply observe the metal for the time being.
Should gold break below 1640, and looking up the fixed range volume profile in this chart, bears are more likely to capture some downside potential whilst gold moves down south towards 1610s as it did in July and September. However, it would be cautious to keep in mind the major reasons (discussed in my previous post) why price action in the bottom half of the large H4 falling channel is likely to be short-lived.
And that's update from me on XAUUSD. Happy gold trading and always stay diligent!
The economic updates this evening barely moved the needle in either direction.
What to Expect Now?
Amidst the mind boggling price behaviours of gold, if you are looking to emerge out of this game with some clearheadedness and a more definitive trading plan for the days ahead, observe if gold is to retest 1640 and actually break below this support level with subsequent responsive trading that pressures gold further down.
In my previous post, 1640s was identified as a fake breakout below the fair value range of 1660-1680. In the same time however, it also established an important support that coincides with the lower H4 support line just below the control price of the falling channel. Trades entered anywhere between 1640 and 1660 come with poor RRRs. No harm biding your time to simply observe the metal for the time being.
Should gold break below 1640, and looking up the fixed range volume profile in this chart, bears are more likely to capture some downside potential whilst gold moves down south towards 1610s as it did in July and September. However, it would be cautious to keep in mind the major reasons (discussed in my previous post) why price action in the bottom half of the large H4 falling channel is likely to be short-lived.
And that's update from me on XAUUSD. Happy gold trading and always stay diligent!
Related publications
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.