2 reasons for gold to reverse, 2 for continuing dropping
Updated
Reason 1 for bullish is, course picked up volume and reverses at daily floor. Secondly RSI in H4 is showing convergence, it could drop further along the floor and then take a turn around.
Reasons to continue are first of all the liquidity gap below our range: As Gold had reached an all time high few weeks ago, it could look towards consolidating in a lower daily channel.
Furthermore, momentum is incredibly strong at an Asian Market hour where less people are aware of the big moves happening. Another reason could be that all contracts from before were skipped in order to reach a lower range.
As long as I do not see clear reversal structure in H1 I would keep looking out for shorts, as those have a higher probability to reach maximum distance.
If course reaches below 2080 with candle close in a significant time frame, I am expecting further dropping towards 2011. (beware of fake outs)
Reasons to continue are first of all the liquidity gap below our range: As Gold had reached an all time high few weeks ago, it could look towards consolidating in a lower daily channel.
Furthermore, momentum is incredibly strong at an Asian Market hour where less people are aware of the big moves happening. Another reason could be that all contracts from before were skipped in order to reach a lower range.
As long as I do not see clear reversal structure in H1 I would keep looking out for shorts, as those have a higher probability to reach maximum distance.
If course reaches below 2080 with candle close in a significant time frame, I am expecting further dropping towards 2011. (beware of fake outs)
Note
Gold answered to daily floor..
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