XAUUSD Gold : Understanding recent 8 week price action! 28.4
Updated
Hey guys!
Really important for me you read the text on chart to understand fully.
Accumulation phase means buyers are feeling out the market and price action is likely preparing for a breakout up.
Distribution phase means the buyers are offloading their stock, essentially taking profits, shorting traders also enter the market bringing price action down.
Usually, depending on the down-trend, there could be a re-distribution phase or two within the down-trend.
At the bottom of the down-trend we again have the accumulation phase initiate with potential upside breakout.
On the chart you will find real time review of the phases and bullish possibility is very valid supported by technical indications such as:
*RSI double bottom oversold
*Falling wedge pattern - consolidating highs and lows in a wedge shape down, bullish
*Connecting lows of the last 8 weeks
*Horizontal level of support
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Really important for me you read the text on chart to understand fully.
Accumulation phase means buyers are feeling out the market and price action is likely preparing for a breakout up.
Distribution phase means the buyers are offloading their stock, essentially taking profits, shorting traders also enter the market bringing price action down.
Usually, depending on the down-trend, there could be a re-distribution phase or two within the down-trend.
At the bottom of the down-trend we again have the accumulation phase initiate with potential upside breakout.
On the chart you will find real time review of the phases and bullish possibility is very valid supported by technical indications such as:
*RSI double bottom oversold
*Falling wedge pattern - consolidating highs and lows in a wedge shape down, bullish
*Connecting lows of the last 8 weeks
*Horizontal level of support
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
If you liked my idea and thoughts, please like and follow!
I promise to continue and provide quality content daily.
I also will answer any and all comments and encourage you to ask questions.
Thank you so much :D
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
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The falling wedge proved to be accurate and a +$25 jump came quick once price action broke above resistance of around 1890. 1912-1915 is the next resistance to pass on the way to 1940.
Retest of 1905, 1897 is possible , price action is now up-trending from accumulation
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The breakout continued with a jump all the way to 1920. Since, it dropped back down to retest the connecting lows on longer time frames and reached the mid 1850's with a spike which immediately corrected back to the big picture up-trend.
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