Chart explanation:
This run has to end some time right? From a technical stand point we've seen such a long run from gold because it really had no resistance to fight against.
This is really the first time since the spring that it will be battling some sort of weekly or monthly structure from the past.
I used the bigger time frames for this analysis but it would look to cluttered if I left them on the screen. Instead I labeled all the things I found on them.
The "Selling zone" is a combination of institutional sellers from the past who moved the market down at that exact price + a bearish 61.8 Fib + two bearish crab patterns forming on the daily + one bearish butterfly + a bearish abcd (orange) + $1600 which is a round number.
We may see price shoot right through this red zone, if it does $1700 looks promising, however I do think we should get SOME sort of reaction around that 61.8 Fib.
(Purple) I have labeled a tendency that gold has when it gets tired or needs a breather, it's pretty self explanatory that we might be entering that phase if you look at everything in purple.
If we do get a sell signal in that sell region, it may be a tricky play because price may go sideways for a bit before a 38.2 retrace happens (past tendency in purple as well)
Another requirement i'd like to see is a drop in volume + a new high, this will show that price is climbing but no one really wants to play the game, which means market makers should push price back down again to attract players (which gets them commissions)
Keep in mind NFP is this friday. Which could give us this final move up.
This run has to end some time right? From a technical stand point we've seen such a long run from gold because it really had no resistance to fight against.
This is really the first time since the spring that it will be battling some sort of weekly or monthly structure from the past.
I used the bigger time frames for this analysis but it would look to cluttered if I left them on the screen. Instead I labeled all the things I found on them.
The "Selling zone" is a combination of institutional sellers from the past who moved the market down at that exact price + a bearish 61.8 Fib + two bearish crab patterns forming on the daily + one bearish butterfly + a bearish abcd (orange) + $1600 which is a round number.
We may see price shoot right through this red zone, if it does $1700 looks promising, however I do think we should get SOME sort of reaction around that 61.8 Fib.
(Purple) I have labeled a tendency that gold has when it gets tired or needs a breather, it's pretty self explanatory that we might be entering that phase if you look at everything in purple.
If we do get a sell signal in that sell region, it may be a tricky play because price may go sideways for a bit before a 38.2 retrace happens (past tendency in purple as well)
Another requirement i'd like to see is a drop in volume + a new high, this will show that price is climbing but no one really wants to play the game, which means market makers should push price back down again to attract players (which gets them commissions)
Keep in mind NFP is this friday. Which could give us this final move up.
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Each week, I send an email breakdown of the best forex setups, watch zones, and market trends so you can trade with confidence.
Your next setup is waiting—Subscribe for access to my weekly outlooks.
Your next setup is waiting—Subscribe for access to my weekly outlooks.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.