Gold breaks ascending triangle, further correction ahead?
Updated
Gold has slided to 1500 since reaching its 52 week high at 1534,35.
Since starting the strong uptrend in late May, we have gone from 1277 to 1534 with smaller corrections and consolidation zones.
Now might be the time for a bigger more powerful correction to the 0.5 fibonacci or even 0.618. It is also a possibilty it will take dive and test the trendline, if it doesn't hold I would look for the support at 1405/1400.
The fib 0.5 is at 1405ish and 0.618 at 1375
On the chart we can see a decending triangle on the 15 min chart which it broke out of and on the larger frame 4hrs we can see an ascending triangle the it also broke out of.
We might see it retesting the bottom of the triangle at 1505 or the resistance at 1506.73 and then test the support at 1490. If we break the support, it's a freefall all the way to 1450/1440.
We can also notice there is a small divergence on the 4hrs RSI and the daily volume seems to have peaked as it is a the highest level since february where it also peaked before going down.
Remember that everything can change with Mr. Trump, trade war and lower interest rates
Happy Trading fellas
This is not a trading advice nor a recommendation for entering the trade.
Do your own due dilligence and come to a conclusion by yourself.
Since starting the strong uptrend in late May, we have gone from 1277 to 1534 with smaller corrections and consolidation zones.
Now might be the time for a bigger more powerful correction to the 0.5 fibonacci or even 0.618. It is also a possibilty it will take dive and test the trendline, if it doesn't hold I would look for the support at 1405/1400.
The fib 0.5 is at 1405ish and 0.618 at 1375
On the chart we can see a decending triangle on the 15 min chart which it broke out of and on the larger frame 4hrs we can see an ascending triangle the it also broke out of.
We might see it retesting the bottom of the triangle at 1505 or the resistance at 1506.73 and then test the support at 1490. If we break the support, it's a freefall all the way to 1450/1440.
We can also notice there is a small divergence on the 4hrs RSI and the daily volume seems to have peaked as it is a the highest level since february where it also peaked before going down.
Remember that everything can change with Mr. Trump, trade war and lower interest rates
Happy Trading fellas
This is not a trading advice nor a recommendation for entering the trade.
Do your own due dilligence and come to a conclusion by yourself.
Note
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.