Gold - Which ellipse will govern the PA ???
I marked two ellipses on the weekly chart: blue and red.
Ascending Blue Ellipse is working since Dec_2015 dip of 1050. Latest boundary reaction of blue ellipse was at 1205 level in July.2017.
Descending Red Ellipse is active since June.2016 high level of 1375. Last week we saw the latest boundary reaction of red ellipse at 1360 level.
Now we are in yellow price zone. Blue ellipse seems more dominant to reach 1420 level.
But if the black supporting curve lying under the yellow zone is broken, a sharp drop to 1100 might be possible, a good opportunity to sell below the support.
On weekly RSI indicator, 70 level is still open. Price will probably try to retrace and spike one time further to reach 70.
Ascending Blue Ellipse is working since Dec_2015 dip of 1050. Latest boundary reaction of blue ellipse was at 1205 level in July.2017.
Descending Red Ellipse is active since June.2016 high level of 1375. Last week we saw the latest boundary reaction of red ellipse at 1360 level.
Now we are in yellow price zone. Blue ellipse seems more dominant to reach 1420 level.
But if the black supporting curve lying under the yellow zone is broken, a sharp drop to 1100 might be possible, a good opportunity to sell below the support.
On weekly RSI indicator, 70 level is still open. Price will probably try to retrace and spike one time further to reach 70.
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