Gold 1-day classic patterns
Q: What has the highest probability of occurring?
In 2021 gold has been rotating between $1900 and $1700 per ounce.
While a variety of classic patterns have either formed or attempted to form throughout the year there appears to be a broader attempt at a double bottom in 2021.
The double bottom, having recently tested and rejected 1700, would need to breakout from ~1915 to be validated.
This pattern projects 2150 as the target.
Objectively gold was in a very strong uptrend from 2018 through 2020 and after making a new all time high in August 2020 the price has corrected almost 20%. There is clear support at 1700 and resistance at 1900. Continuing range bound price action suggests a mean price of 1800.
The price is not going to reach 2150 on its own volition. Some factor's worth considering include risk-on/risk-off sentiment, Federal Reserve monetary policy, US Dollar valuation, political events, government trading, and the global supply from mining.
Since the double bottom is not validated the current position is neutral with a bias in favour of mean reversion about 1800.
In 2021 gold has been rotating between $1900 and $1700 per ounce.
While a variety of classic patterns have either formed or attempted to form throughout the year there appears to be a broader attempt at a double bottom in 2021.
The double bottom, having recently tested and rejected 1700, would need to breakout from ~1915 to be validated.
This pattern projects 2150 as the target.
Objectively gold was in a very strong uptrend from 2018 through 2020 and after making a new all time high in August 2020 the price has corrected almost 20%. There is clear support at 1700 and resistance at 1900. Continuing range bound price action suggests a mean price of 1800.
The price is not going to reach 2150 on its own volition. Some factor's worth considering include risk-on/risk-off sentiment, Federal Reserve monetary policy, US Dollar valuation, political events, government trading, and the global supply from mining.
Since the double bottom is not validated the current position is neutral with a bias in favour of mean reversion about 1800.
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