In the previous article, I said that gold has shown signs of over-inflation recently. We should not be overly bullish and should be wary of the risk of a sharp correction. Now it seems to be true.
Although I have anticipated the possibility of a sharp correction today, I did not expect it to come so quickly. I originally thought that gold would have another chance to hit the previous high, but it only rebounded less than $10 at the 3125 support and then fell directly, which also caused our long orders to hit the stop loss and ended our 12-game winning streak.
From the 1H chart, gold has now fallen below the rising trend line, and the primary support below has moved down to around 3100, which is also near the 0.618 position of the Fibonacci retracement. If the decline cannot be supported here, the gold price may fall further, 3080, 3050 are possible.
Since it is a correction trend, we can only sell at a high level if we want to trade. Now the primary resistance above is the previous support, and the current resistance is near the 3120-2125 area. If the gold price returns here and cannot break, you can consider selling here.
Although I have anticipated the possibility of a sharp correction today, I did not expect it to come so quickly. I originally thought that gold would have another chance to hit the previous high, but it only rebounded less than $10 at the 3125 support and then fell directly, which also caused our long orders to hit the stop loss and ended our 12-game winning streak.
From the 1H chart, gold has now fallen below the rising trend line, and the primary support below has moved down to around 3100, which is also near the 0.618 position of the Fibonacci retracement. If the decline cannot be supported here, the gold price may fall further, 3080, 3050 are possible.
Since it is a correction trend, we can only sell at a high level if we want to trade. Now the primary resistance above is the previous support, and the current resistance is near the 3120-2125 area. If the gold price returns here and cannot break, you can consider selling here.
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Related publications
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.
If you don’t know where to start trading, you can join the channel and get accurate trading signals
👊Join the free Telegram group:
t.me/Reliable_Trading0
🏆Contact me to copy trading:
t.me/Reliable_Trading1
👊Join the free Telegram group:
t.me/Reliable_Trading0
🏆Contact me to copy trading:
t.me/Reliable_Trading1
Related publications
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.