Gold bears looking for a discount (Update)
Hey guys,
Bulls defending their breakout this week, with a reasonable weekly close 1771+ (0.236 weekly fibo support) and within the bull channel. This still can develop as a bearflag towards 1680, so bullish caution remains important. Goldbears are known for their sudden & strong moves (they reminded us on Friday).
On the daily we see a nice impulse move to 1798 which retraced to the 0.236 fibo support (1772) and I expect a bullish continuation move next week towards 1805, 1820 and 1830 (0.382 weekly fibo resistance) from this level.
The upside is pretty much capped (for now) by the weekly 50 EMA with a large probability of a bearish reversal from 1820-1830. The green doji weekly candle signalling the next supply zone (strong resistance). Also we have a bearish 3-drive (H4 chart) and a Bearish Gartley waiting for us at that level. In the case of bearish continuation below 1765 on Monday, then we are looking at 1755-1745 support zone as the next cushion (0.618 fibo support).
Looking at fundamentals, we have Uncle Powell to shake up markets on Wednesday with EU GDP & US PCE data planned for Friday. My expectation is that we will have a bullish start of the week, with bulls working themselves up to the 1820 level and a grandfinale run on Wednesday to 1830. On Thursday we should start seeing bearish signals with some end of week & month profit taking to low 1800's.
On the weekly chart, there is a whole bowl of spaghetti in the 1780-1800 zone. It's important for bulls to close the coming week 1800+, else this will make the 1760 support, perhaps even lower, vulnerable for a bearish testdrive. In the case we close the week & month 1800+, bulls will print an engulfing monthly candle with more upside to be expected towards 1850 in May.
Is this the start of the 'rip your face-off' bull rally? We are about to find out next week!
Stay blue 😏,
Cesaro
Bulls defending their breakout this week, with a reasonable weekly close 1771+ (0.236 weekly fibo support) and within the bull channel. This still can develop as a bearflag towards 1680, so bullish caution remains important. Goldbears are known for their sudden & strong moves (they reminded us on Friday).
On the daily we see a nice impulse move to 1798 which retraced to the 0.236 fibo support (1772) and I expect a bullish continuation move next week towards 1805, 1820 and 1830 (0.382 weekly fibo resistance) from this level.
The upside is pretty much capped (for now) by the weekly 50 EMA with a large probability of a bearish reversal from 1820-1830. The green doji weekly candle signalling the next supply zone (strong resistance). Also we have a bearish 3-drive (H4 chart) and a Bearish Gartley waiting for us at that level. In the case of bearish continuation below 1765 on Monday, then we are looking at 1755-1745 support zone as the next cushion (0.618 fibo support).
Looking at fundamentals, we have Uncle Powell to shake up markets on Wednesday with EU GDP & US PCE data planned for Friday. My expectation is that we will have a bullish start of the week, with bulls working themselves up to the 1820 level and a grandfinale run on Wednesday to 1830. On Thursday we should start seeing bearish signals with some end of week & month profit taking to low 1800's.
On the weekly chart, there is a whole bowl of spaghetti in the 1780-1800 zone. It's important for bulls to close the coming week 1800+, else this will make the 1760 support, perhaps even lower, vulnerable for a bearish testdrive. In the case we close the week & month 1800+, bulls will print an engulfing monthly candle with more upside to be expected towards 1850 in May.
Is this the start of the 'rip your face-off' bull rally? We are about to find out next week!
Stay blue 😏,
Cesaro
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