Gold Long Idea with Confluence Analysis
Gold has been in a downtrend for about two months now. It formed a Rising Wedge Pattern which deceived a lot of Traders to go long. The bears are still in control. The Support of the Wedge has been broken and retested, so we should be expect a downward movement soon.
Pivot Analysis shows that Gold is still Strongly Bearish. Gold is also below the 100 SMA and 200 SMA on both 1-Hour Chart and 4-Hour Chart. The next buying area based on Confluence is in the Green Circle in the Chart, where we have Three Types of Supports. So when price gets there, we should prepare to buy.
We also have a Void that has also formed with a Quasimodo Fakeout Pattern too, So if price goes up to fill that void, we should prepare to sell at the the Red Circle at the top of the Chart near the Weak Resistance.
But for now, we focus on the Green Circle for a Buy as this is more likely to happen.
As usual we enter with a tight stop loss to reduce our risk, in case the market reverses and changes direction. Don't forget to use good risk management too. Cheers!!
Pivot Analysis shows that Gold is still Strongly Bearish. Gold is also below the 100 SMA and 200 SMA on both 1-Hour Chart and 4-Hour Chart. The next buying area based on Confluence is in the Green Circle in the Chart, where we have Three Types of Supports. So when price gets there, we should prepare to buy.
We also have a Void that has also formed with a Quasimodo Fakeout Pattern too, So if price goes up to fill that void, we should prepare to sell at the the Red Circle at the top of the Chart near the Weak Resistance.
But for now, we focus on the Green Circle for a Buy as this is more likely to happen.
As usual we enter with a tight stop loss to reduce our risk, in case the market reverses and changes direction. Don't forget to use good risk management too. Cheers!!
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