Gold has ranged in the 1720-1800 zone for the past 6 months. Price is now at the channel median, which is also the 61.8% retracement. Two things should catch our attention here: Gold is testing the 61.8% level again, which signals that it is not a reversal level but price wants to go higher. And secondly, it appears to hold the 21 day MA. If an asset begins to hold various moving averages (like the EMA ribbon) some traders call this an 'active sequence'.
Elliott:
We are able to count a (i)-(ii), i-ii wave. If correct, we should see an expansion of momentum into wave 3 of 3.
Geometry:
Price bounced at the lower boundary of the channel and currently stalls at the median.
Oscillators:
The MFI is >50 and points upwards. Stochastic is overbought and due to reverse.
Correlations:
The DXY is at a multi-month resistance and potentially breaking down, which would be positive for Gold.
How to trade it:
If Gold continues hold and stay above the 21 day MA, we can use the active sequence to build further long exposure and speculate on an impulse move to the upside, which would align well with the Elliott count. The Stochastic tells us that another re-test of the 21 day MA is possible. A break of the MA would invalidate the idea.
Elliott:
We are able to count a (i)-(ii), i-ii wave. If correct, we should see an expansion of momentum into wave 3 of 3.
Geometry:
Price bounced at the lower boundary of the channel and currently stalls at the median.
Oscillators:
The MFI is >50 and points upwards. Stochastic is overbought and due to reverse.
Correlations:
The DXY is at a multi-month resistance and potentially breaking down, which would be positive for Gold.
How to trade it:
If Gold continues hold and stay above the 21 day MA, we can use the active sequence to build further long exposure and speculate on an impulse move to the upside, which would align well with the Elliott count. The Stochastic tells us that another re-test of the 21 day MA is possible. A break of the MA would invalidate the idea.
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.
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.