Gold - Divergences pointing to downside
Updated
Good evening traders,
Let's take a quick look at a short term trade opportunity with gold.
Bearish Key Points:
Hourly:
1) We have bearish divergence on RSI, MACD, and VFI
2) Sell signal on vigor 1H, as well as daily beginning to roll over.
Bullish Key Points:
1) Daily chart is good. While we had a bearish candle print Monday, it was not followed through with any conviction.
2) RSI on daily looks solid as well, however it is beginning to roll over.
3) MACD and VFI look solid as well.
Putting it together:
Short term, gold still looks strong, and it may take another day of trading before a drop. If the bulls manage to get some volume at these levels, we could see a sharp upwards spike, however it is unlikely in my opinion, but not impossible.
I expect the divergences that are beginning to show on the hourly chart to continue into the 4hour, etc. At which point we can expect a retrace.
Targets:
1) 1266
2) 1260
3) 1232
4) 1215 (also the .618 of the bullish impulse)
Let's take a quick look at a short term trade opportunity with gold.
Bearish Key Points:
Hourly:
1) We have bearish divergence on RSI, MACD, and VFI
2) Sell signal on vigor 1H, as well as daily beginning to roll over.
Bullish Key Points:
1) Daily chart is good. While we had a bearish candle print Monday, it was not followed through with any conviction.
2) RSI on daily looks solid as well, however it is beginning to roll over.
3) MACD and VFI look solid as well.
Putting it together:
Short term, gold still looks strong, and it may take another day of trading before a drop. If the bulls manage to get some volume at these levels, we could see a sharp upwards spike, however it is unlikely in my opinion, but not impossible.
I expect the divergences that are beginning to show on the hourly chart to continue into the 4hour, etc. At which point we can expect a retrace.
Targets:
1) 1266
2) 1260
3) 1232
4) 1215 (also the .618 of the bullish impulse)
Note
Gold is finally breaking downwards after surprising news of US jobs estimates. Would expect some range trading at current levels with a break later in the day towards 1271 / 1276, how that zone reacts should decide whether we will see a range bound market or further drops.
1) TD Sequential shows bear trend has a long ways to go, with a relief rally starting now (expect 1280-1282) due to lower time frame exhaustion.
2) Ichi cloud flashed a sell signal, with lagging indicator approaching on 4 hour.
3) MACD/RSI/VFI bearish divergence finally playing out.
4) Momentum is just getting going.
Note
*typo for break to 1271/1266
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