Hi Guys,
Gold has reached a price where it looks likely that we will see a correction and a halt in this leg of its uptrend.
The weekly chart is overbought and showing divergence at the same time the index has reached the top of the channel that price has been moving in and respecting.
There is also confluence with very important fib levels. The current high is at the 2.0 fib retracement of points B to C and 1.0 fib trend extension of points A to B to C.
The coloured lines are AVWAP from previous support levels that the next low/support consistently lands on. The light blue line is a good indication of where we may get a pullback to (bottom of channel)if indeed we do get a sizeable retracement. Gold is looking pretty stretched so taking into account the confluences that we have at this current price there is opportunity for a good sell trade and opportunity to jump on the trend at a lower level.
The right chart is the 4hr chart that is showing price failing to make a higher high and breaking and closing below the previous higher low, essentialy a head and shoulders pattern. Price is pulling back into the broken support level so entry at lower time frame with candlestick chart pattern etc may provide nice risk to reward opportunity.
Safe Trading all
Gold has reached a price where it looks likely that we will see a correction and a halt in this leg of its uptrend.
The weekly chart is overbought and showing divergence at the same time the index has reached the top of the channel that price has been moving in and respecting.
There is also confluence with very important fib levels. The current high is at the 2.0 fib retracement of points B to C and 1.0 fib trend extension of points A to B to C.
The coloured lines are AVWAP from previous support levels that the next low/support consistently lands on. The light blue line is a good indication of where we may get a pullback to (bottom of channel)if indeed we do get a sizeable retracement. Gold is looking pretty stretched so taking into account the confluences that we have at this current price there is opportunity for a good sell trade and opportunity to jump on the trend at a lower level.
The right chart is the 4hr chart that is showing price failing to make a higher high and breaking and closing below the previous higher low, essentialy a head and shoulders pattern. Price is pulling back into the broken support level so entry at lower time frame with candlestick chart pattern etc may provide nice risk to reward opportunity.
Safe Trading all
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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.