Gold Short Potential
Updated
Hi Traders,
Today we find gold sitting on a strong resistance area, having formed a rising wedge and completing wave E/5.
Gold has formed a bearish divergence on 4h chart as well as considered slightly oversold.
MACD is also showing bearish divergence and is showing down pressure.
Targets are set on chart.
FOMC is this month and expectation is for FED to start tapering depending on Delta effects on economy.
Some say it is priced in however I feel it is not.
It would not be a bad idea to split your trades into 4 and have an open position or have TP3 as open.
This is a 16:1 trade if SL is not met - you are welcome to move SL accordingly. Price should move quickly to 40/45 if breaking 34/35, caution should be had.
Please trade with caution.
This is not financial advice.
Today we find gold sitting on a strong resistance area, having formed a rising wedge and completing wave E/5.
Gold has formed a bearish divergence on 4h chart as well as considered slightly oversold.
MACD is also showing bearish divergence and is showing down pressure.
Targets are set on chart.
FOMC is this month and expectation is for FED to start tapering depending on Delta effects on economy.
Some say it is priced in however I feel it is not.
It would not be a bad idea to split your trades into 4 and have an open position or have TP3 as open.
This is a 16:1 trade if SL is not met - you are welcome to move SL accordingly. Price should move quickly to 40/45 if breaking 34/35, caution should be had.
Please trade with caution.
This is not financial advice.
Note
Caution around this area 1819 - 1821, possible we could be testing the break of structure and range over until news on Wednesday and Thursday which could take gold above 1834. Note
Possible move on the 1H chart.
We still have 2 weeks till FOMC which could be the catalyst for a downward crash.
It is possible that we see 1808 and above targeting 1818 - 1830.
I don't see us breaking 1834 but if we do huge potential for swing.
Note
Previous forecast played out reaching 1804 instead of 1808. Current outlook:
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