Gold, Long Term Picture, Part 3

Updated

In my previous analysis, it looked like we could see a correction again from this big drop. We had an attempt to break that resistance, almost looked like succeeding but got rejection. That curved blue line is something to keep an eye in combination with that range between the red and green zone. We can see a small wedge, suggesting it might drop towards the 1284 again. If we see a decent drop and fast break of the 1284ish, we will probably see a continuation to the 1270 zone. It is very unlikely to see it drop much more, without making an attempt to at least 1290/1300 again. Assuming the trend is still bearish. As mentioned in my previous analysis, i think bullish trend has a bigger chance for the long term.

For more info, read the previous 2 analysis.

Previous analysis:

Note

So far following that blue line in the middle. That wedge played out, but it made some means moves though before the rally. It's these kind of moves that make short term traders loose money. Because it looks like supports breaks (and it clearly did) so stops get hit of tight stops.

What they do in that blue circle, is chase the liquidity, trigger stops to create sell volume, so their buys that are at the lows get filled and THEN the price gets pushed up. It's mean and not much one can do. Only thing that helps, is having a believe in a certain trade, having a wider stop.

Note

At the resistance zone now, so chances increase now for a correction down again, like the blue line. Unless we see a squeeze straight through it. Moments like these, one could do a stop for maybe half or more at a break of that trend line on the left or that green support

Note

New Gold analysis:

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