XAUUSD Wyckoff Accumulation - Don't get caught out!
Updated
Illustrated above is a break out of an accumulation set up which should see gold recapturing the price levels it fell through last week. The immediate upside price objectives are 1802,1811 and 1828.
Last weeks decline found preliminary support (PS) at 1794. This temporary relief is usually followed by what is known as a selling climax (SC) which took gold down to 1786. We saw first signs of exhaustion at this stage confirmed by the automatic rally (AR) back towards the preliminary support (PS), before a secondary test (ST) saw price retracing back towards the climax lows. What follows next usually leaves an asset temporarily range-bound and is characterised by several rallies and secondary tests; the highest and lowest price points outlining the support and resistance levels for the range.
An initial a sign of strength (SOS) signified that a bottom had occurred with buyers emerging. This was subsequently followed by another sell off which often breaks the selling climax (SC) lows briefly. A key indicator to look out for at this stage is volume. Lower volume than during the initial selling climax (SC) indicates a possible (Spring) with confirmation of the Spring being further strengthened by another attempted sell off to the last point of support (LPS) which witnesses price bouncing back off the support line identified during the earlier stages. From this point onwards, price is expected to retrace back up and break out of the range targeting previous levels of distribution.
Whilst the longer term technicals and sentiment remain bearish, bulls have the near-term technical advantage. A daily close below 1785 will be required to change this near-term outlook. We can expect for gold to retest the 1828-1834 price level again. A successful break of this could lead bulls back up to the 1855-1860 level.
I hope you found this useful, do leave your thoughts in a comment below.
As always, a 'like' and 'follow' provides encouragement to share further ideas.
Thank you for taking the time.
BeyondEdge
Your Edge Is Your Perception. Go Beyond.
Last weeks decline found preliminary support (PS) at 1794. This temporary relief is usually followed by what is known as a selling climax (SC) which took gold down to 1786. We saw first signs of exhaustion at this stage confirmed by the automatic rally (AR) back towards the preliminary support (PS), before a secondary test (ST) saw price retracing back towards the climax lows. What follows next usually leaves an asset temporarily range-bound and is characterised by several rallies and secondary tests; the highest and lowest price points outlining the support and resistance levels for the range.
An initial a sign of strength (SOS) signified that a bottom had occurred with buyers emerging. This was subsequently followed by another sell off which often breaks the selling climax (SC) lows briefly. A key indicator to look out for at this stage is volume. Lower volume than during the initial selling climax (SC) indicates a possible (Spring) with confirmation of the Spring being further strengthened by another attempted sell off to the last point of support (LPS) which witnesses price bouncing back off the support line identified during the earlier stages. From this point onwards, price is expected to retrace back up and break out of the range targeting previous levels of distribution.
Whilst the longer term technicals and sentiment remain bearish, bulls have the near-term technical advantage. A daily close below 1785 will be required to change this near-term outlook. We can expect for gold to retest the 1828-1834 price level again. A successful break of this could lead bulls back up to the 1855-1860 level.
I hope you found this useful, do leave your thoughts in a comment below.
As always, a 'like' and 'follow' provides encouragement to share further ideas.
Thank you for taking the time.
BeyondEdge
Your Edge Is Your Perception. Go Beyond.
Note
Price objectives achieved.
🔰 Not financial advice. For educational purposes only.
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BeyondEdge
🔰 Join the free Telegram channel for more crypto - t.me/BeyondEdge
🔰Follow me on twitter twitter.com/beyondedge_
Your likes and follows are much appreciated.
BeyondEdge
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