XAUUSD in Distribution
Updated
Gold is sowing the distinct pattern of a Wycoff Distribution.
Context and Sentiment are bullish, focusing on themes of Currency War, Market Volatility Hedge and Incoming Rate Cuts.
This allows large volumes to trade hands without drastically reducing prices.
If the narrative breaks, expecting reversal and correction of current price action with a measured move of $500 from current ATH to $2.000 in a series of volatile dumps.
On the counter side, if the narrative holds and price breaks to the upside, expecting a flag breakout to $3.000 so stop loss is placed accordingly on the current ATH.
Context and Sentiment are bullish, focusing on themes of Currency War, Market Volatility Hedge and Incoming Rate Cuts.
This allows large volumes to trade hands without drastically reducing prices.
If the narrative breaks, expecting reversal and correction of current price action with a measured move of $500 from current ATH to $2.000 in a series of volatile dumps.
On the counter side, if the narrative holds and price breaks to the upside, expecting a flag breakout to $3.000 so stop loss is placed accordingly on the current ATH.
Note
Gold is consolidating and testing its range. Current hourly chart presents us with a formation that contains both bearish and bullish formations.
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Price actions has started to price in a lower high. If this movement completes we can expect a short term bearish trend reversal towards a retest of the $2.480 support. If this support is broken a double top formation emerges for an expected move towards $2.430.
This would put us at a retreat of -4% from ATH and within a new bearish trend of lower highs and lower lows.
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On the counter side, current price action may also be interpreted as a bull flag. If the flags breaks above the resistance @ $2.530 will head for an expected move towards $2.560, invalidating our downside thesis with a new ATH.
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Order cancelled
Gold broke out, even if rejected targets will be greatly different.
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