Gold on Range Bound Trading for now
Gold is usually Range Bound. I noticed that every time it increased by >5 USD in <1 Hour, it always goes back to its starting point before the said amount and it can even exaggerate the move moving downwards. If you plan to go Long, then I will see first how Gold will react to the 20 Daily SMA. Meaning:
1. Will it act as Dynamic Support of the Uptrend?
2. Will it wait for the 10 Daily SMA [measure of mid momentum] until they merged together to continue the trend going Up?
3. Will those 2 moving average incline going down to the 50 Daily SMA as target?
If I plot the 50 Daily SMA, it is still in a Flat line which informs me that the trend is still UP but on a sideways movement bias.
Maybe Gold is overstretched in a way that it moved too fast from 1480+ level to 1600+ with 10 consecutive Green candles on Daily Chart and NO RED Candles . Will wait and see.
For now, find opportunities going Long or Short on a range bound market on a lower time frame.
For me, break 1536 level [as 20 Daily SMA is 1540] with a piercing Red Candle then around 1500 will be the possible target where the medium term moving averages are - 50 and 100 SMA Daily and can even exaggerate a bit by falling around 1490.
1. Will it act as Dynamic Support of the Uptrend?
2. Will it wait for the 10 Daily SMA [measure of mid momentum] until they merged together to continue the trend going Up?
3. Will those 2 moving average incline going down to the 50 Daily SMA as target?
If I plot the 50 Daily SMA, it is still in a Flat line which informs me that the trend is still UP but on a sideways movement bias.
Maybe Gold is overstretched in a way that it moved too fast from 1480+ level to 1600+ with 10 consecutive Green candles on Daily Chart and NO RED Candles . Will wait and see.
For now, find opportunities going Long or Short on a range bound market on a lower time frame.
For me, break 1536 level [as 20 Daily SMA is 1540] with a piercing Red Candle then around 1500 will be the possible target where the medium term moving averages are - 50 and 100 SMA Daily and can even exaggerate a bit by falling around 1490.
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.