Gold's Hourly Chart - M_Top Breach @ 2513.25 - Recovery?
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Hello,
I was saying all week that the USDX was going to be strong in it's recovery from selling off the past few weeks.
I didn't think the economic data was all that bad during Friday, I think the damage set-in once the USDX started to rally on the retest and close above 101.50. As the NY session opened on Friday I saw a lot selling of the Gold-price as the USDX was making a sustained rally above 101.50 and then it skipped back under this level and buying of the Gold-price started to occur but it was a bull-trap.
The Gold market sold off and as can be seen on the hourly chart a breach below 2513.25 and the selling intensified. It is always harder to navigate in real time, I get it.
You can see here on the hourly that the 200 EMA is starting to slope down and the 9 EMA is about to cross it.
But it's not all bad. When Asia opens on Monday there is a bullish Head n Shoulders that has formed on a 5 minute chart. (Please see below). Indications are that this will retest and execute taking the market higher. However, for the market to recover, buying will have to continue following this pattern to keep the Gold price above important key moving averages. Otherwise, this 5M pattern will play out bullishly for a time and the Gold price could sell off again. The Gold market got its liquidity during Friday, so lets see where price goes.
Hello,
I was saying all week that the USDX was going to be strong in it's recovery from selling off the past few weeks.
I didn't think the economic data was all that bad during Friday, I think the damage set-in once the USDX started to rally on the retest and close above 101.50. As the NY session opened on Friday I saw a lot selling of the Gold-price as the USDX was making a sustained rally above 101.50 and then it skipped back under this level and buying of the Gold-price started to occur but it was a bull-trap.
The Gold market sold off and as can be seen on the hourly chart a breach below 2513.25 and the selling intensified. It is always harder to navigate in real time, I get it.
You can see here on the hourly that the 200 EMA is starting to slope down and the 9 EMA is about to cross it.
But it's not all bad. When Asia opens on Monday there is a bullish Head n Shoulders that has formed on a 5 minute chart. (Please see below). Indications are that this will retest and execute taking the market higher. However, for the market to recover, buying will have to continue following this pattern to keep the Gold price above important key moving averages. Otherwise, this 5M pattern will play out bullishly for a time and the Gold price could sell off again. The Gold market got its liquidity during Friday, so lets see where price goes.
Note
Below is how the market finished Friday on a 5m chart.
Note
On a 10 minute chart perspective of Friday's close. Notice this is a bearish-pennant. The head 'n' shoulders on 5 minute may play out to the upside initially but whether this is a bull-trap remains to be seen, sustained buying to keep price above important moving averages will be needed to take the gold-price back up.
Note
Here is a closer look at the 2513.25 weakness price on a 5m Chart.
Note
* I hope this analysis helps you with your own trading.
* Please don't rely solely on my own financial advice or analysis of the Gold-price.
Note
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