Understanding Gold's Path to$2680:Key Levels and Market Behavior
The current correction in Gold is likely targeting the $2680 level, which remains relevant. However, there's also an interesting level at $2640 that has emerged along the way .
This doesn’t change the overall bearish outlook for Gold, but I want to highlight something new!
I’m pointing out an important detail for you: the price behavior at the $2590 level. Previously, this level was broken by a bearish candle (1), and the price has returned to it (2). The devil is in the details!
Here’s the insight: if the price approaches this level from below again (as it has), breaks through, and then holds above it (1-2), we could see an upward trend. And vice versa. This pattern occurs very frequently across all instruments.
The reason for the 'trigger' nature of the candle breaking support is that it serves as a trigger for many traders, including large ones. A well-established breakout pattern generates a chain of events and actions that are subsequently utilized by 'other' market participants.
Keep an eye on it, or better yet, backtest it and draw your own conclusions!
This doesn’t change the overall bearish outlook for Gold, but I want to highlight something new!
I’m pointing out an important detail for you: the price behavior at the $2590 level. Previously, this level was broken by a bearish candle (1), and the price has returned to it (2). The devil is in the details!
Here’s the insight: if the price approaches this level from below again (as it has), breaks through, and then holds above it (1-2), we could see an upward trend. And vice versa. This pattern occurs very frequently across all instruments.
The reason for the 'trigger' nature of the candle breaking support is that it serves as a trigger for many traders, including large ones. A well-established breakout pattern generates a chain of events and actions that are subsequently utilized by 'other' market participants.
Keep an eye on it, or better yet, backtest it and draw your own conclusions!
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