Updated Gold Analysis
Gold started its latest rally following the completion of an AB=CD pattern near 1070$ and the breakout of a small falling Wedge breakout.
It rallied 100$ and met the major 1160-1180$ structure zone that held as support till July 2015 and reversed its role to resistance and pushed Gold back towards the 1100$ zone.
During the last trading week, gold rallied from 1100$ and closed above its fast and 50 SMA line, providing another bullish signal that it may make another run towards its 200 SMA line.
If we are indeed before another gold run there are two sell zones to focus on:
1. 1160-1180$ - The same zone that managed to stop Gold on its previous run is about to get some further resistance in the shape of the daily 200 SMA line
2. If somehow Gold will manage to overcome 1160-1180$, it will complete a bearish harmonic pattern (Gartley) right on the 1200$ handle (also daily structure zone - 1200-1210$)
Notice also that I've added a descending channel, created from two parallel downtrend lines, both played resistance role in Gold's decline (see marking with arrows), and each one of these lines touch one of resistance zones (the bottom one touches 1160$ and the upper one touches 1200$). This is actually a downtrend channel.
The first resistance zone could lead to another bearish wave in gold.
The second one (near 1200$) could send Gold for a consolidation period between 1210$ and 1160$ as we've seen it doing between March and June this year.
If you like this analysis you can sign up for my weekly newsletters here (forex and stocks) - goo.gl/psNTqg
Visit my blog and follow for great trading ideas and educational material - goo.gl/78KZsl
Visit the Youtube channel - goo.gl/CC2leM
It rallied 100$ and met the major 1160-1180$ structure zone that held as support till July 2015 and reversed its role to resistance and pushed Gold back towards the 1100$ zone.
During the last trading week, gold rallied from 1100$ and closed above its fast and 50 SMA line, providing another bullish signal that it may make another run towards its 200 SMA line.
If we are indeed before another gold run there are two sell zones to focus on:
1. 1160-1180$ - The same zone that managed to stop Gold on its previous run is about to get some further resistance in the shape of the daily 200 SMA line
2. If somehow Gold will manage to overcome 1160-1180$, it will complete a bearish harmonic pattern (Gartley) right on the 1200$ handle (also daily structure zone - 1200-1210$)
Notice also that I've added a descending channel, created from two parallel downtrend lines, both played resistance role in Gold's decline (see marking with arrows), and each one of these lines touch one of resistance zones (the bottom one touches 1160$ and the upper one touches 1200$). This is actually a downtrend channel.
The first resistance zone could lead to another bearish wave in gold.
The second one (near 1200$) could send Gold for a consolidation period between 1210$ and 1160$ as we've seen it doing between March and June this year.
If you like this analysis you can sign up for my weekly newsletters here (forex and stocks) - goo.gl/psNTqg
Visit my blog and follow for great trading ideas and educational material - goo.gl/78KZsl
Visit the Youtube channel - goo.gl/CC2leM
Related publications
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.