Gold monthly chart analysis
Updated
Gold uptrend looks scary but on a monthly chart looks more than understandable. In this chart I pointed out 3.5 (light blue line) possible paths for gold. The first one (light green) may seem the most probable outcome, but a look at RSI and %R show that the red scenario may be not so unlikely. Gold is now at the test of the descending trendline from ATH, 20$ below one static (of many) resistance level that may cap the wick of the monthly candle (or may not ;) ). The blue scenario is also not completely out of reality, technically would grant a discharge of %R below the MA and a retest of the ascending trendline (just immagine Mr. T.(rump) getting along with China and Iran and why not also NK). The take is: I personally think can be time for bulls to take at least partial profits, for bears to try to step in or to hold on on losing positions till the test of 1420/50 area, to bears I suggest to hedge their positions ( maybe a short position on DXY, or long mining stocks). The month is almost over, better wait for the close of this candle before taking decisions that may cause pain for losses or missed gains. Here I'm obviously referring at futures traders, physical hoarders will hold and buy dips maybe the green lower trendline may help them time buys.
I wish you all fun and gains trading
I wish you all fun and gains trading
Note
The monthly candle closed below the descending trendline. 1380 can be the next intermediate support an interesting level for longs can be 1325 on the descending trendline of the resistances of the last 5 years.
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.