GOLD (XAUUSD) Developing Bullish Structure - LRA Perspective.Right then, let's have a look at the Gold chart. A very interesting picture indeed.
Based on our LRA strategy's interpretation, the market conditions for XAU/USD have recently shifted from bearish to a developing bullish structure.
Here's a brief overview:
Prior Downtrend: First, we can see the strategy successfully identify a prior downtrend, capturing a profitable short trade.
The Current "Support LR": The market then found a bottom and entered a period of consolidation. Our strategy has identifies this area as a "Support Locked-in Range", which is signified by the prominent green text.
The Trapped Sellers: What this green text tells us is that the sellers who were trying to push the price further down within this range have failed. The price has now broken out to the upside of this range, meaning those sellers are now trapped in losing positions.
Active Long Position: As a result, our strategy has correctly entered an "Long" trade. It is siding with the buyers and betting that the trapped sellers will be forced to buy back their short positions, which would add further fuel to this upward move.
In essence, the market has absorbed the selling pressure and has now broken its immediate downward structure. The strategy is positioned for a potential continuation of this new upward momentum.
Cheers.
