XAUUSD: Little Technical correction possible but Remain BEAR
Gold may face a litle technical correction up side. But the general trend remains on the downside.
Next June 5th ECB announcement with a "possible" negative interest rate decision of ECB may favor on a short term basis some private trader to invest on GOLD in order to protect their investment and money from desinflation, but, it would be illusive to think that on a short term basis, GOLD would protect investor.
Institutional investors are not yet trading GOLD and there is no reason to go LONG on GOLD.
Technically speaking, The RED bold trend line is a virtual and fake trend line based on the excess of the market. One could have thought that having breaked this trend line, the move was upward.
But if you erase the excessive peak and take only into account the proper volume wise candle, within the STOCH non oversold and non overbought level, the blue trend line is the optimum TREND line.
On a very big picture, the general trend may look like a falling wedge, but this to be confirmed.
1350 Is a very solid resistance level where gold was stuck there for more then 5 days before being able to break this level, which appears to be a very weak supports.
Headline goal remain 1180 or even bellow. Therefore, we may expect Gold to make some technical adjustment and correction on the market without breaking the main trend line.
The prices remain much bellow the MA20 and MA50.
The black line is the anticipation of the movement of the proce within the triangle. If confirmed, we would be in a falling wedge pattern, and at the end of the Triangle toward 1180 or even a bit lower, we may then see a reversal of the trend and a break towards 1400 and then step by step 1550, 1620 etc....
Next June 5th ECB announcement with a "possible" negative interest rate decision of ECB may favor on a short term basis some private trader to invest on GOLD in order to protect their investment and money from desinflation, but, it would be illusive to think that on a short term basis, GOLD would protect investor.
Institutional investors are not yet trading GOLD and there is no reason to go LONG on GOLD.
Technically speaking, The RED bold trend line is a virtual and fake trend line based on the excess of the market. One could have thought that having breaked this trend line, the move was upward.
But if you erase the excessive peak and take only into account the proper volume wise candle, within the STOCH non oversold and non overbought level, the blue trend line is the optimum TREND line.
On a very big picture, the general trend may look like a falling wedge, but this to be confirmed.
1350 Is a very solid resistance level where gold was stuck there for more then 5 days before being able to break this level, which appears to be a very weak supports.
Headline goal remain 1180 or even bellow. Therefore, we may expect Gold to make some technical adjustment and correction on the market without breaking the main trend line.
The prices remain much bellow the MA20 and MA50.
The black line is the anticipation of the movement of the proce within the triangle. If confirmed, we would be in a falling wedge pattern, and at the end of the Triangle toward 1180 or even a bit lower, we may then see a reversal of the trend and a break towards 1400 and then step by step 1550, 1620 etc....
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