Gold has been overbought technically, which was visible from RSI (it was flashing the overbought conditions positioning above the 70 point line), Bollinger Bands (price was spiking above the 2 standard deviation zone), and the price action: after the initial breakout, it was rapidly sold off not holding the buying pressure anymore.
So, the most expected scenario was probably a consolidation or a correction. As we see now, the scenario of correction was triggered.
As Gold served both as a protection, and as a growth vehicle, it's difficult to assume the further liquidation. The most expected scenario would be a bullish pivot and locking in a consolidation, as shown at the chart.
Don't forget - this is just the idea, always do your own research and never forget to manage your risk!
So, the most expected scenario was probably a consolidation or a correction. As we see now, the scenario of correction was triggered.
As Gold served both as a protection, and as a growth vehicle, it's difficult to assume the further liquidation. The most expected scenario would be a bullish pivot and locking in a consolidation, as shown at the chart.
Don't forget - this is just the idea, always do your own research and never forget to manage your risk!
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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.
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.