Bull Flag Topside Target Reached!
Now, now, hold your horses. This could go either way, but I'm super excited about reaching the topside of this channel...
Bullish Indications:
1) Bull Flag (Red): 3 touches on the topside, 3 touches on the bottom, only 2 of each required. Bull flag targets are listed in the chart. As long as price remains in the channel, Gold is bullish long term.
2) Reversal Divergence (Blue) (Moderate Strength): 2 reversal divergence signals, first one failed, however, the more these occur, the more likely they will succeed.
3) Hidden Bearish Divergence (Orange) (Weak Strength): Price has higher lows while RSI is showing lower lows.
4) TD Sequential (indicator) (not shown on the chart): Printed a Red 9 on the weekly. This shows that after 9 consistent bearish candles, a reversal is likely.
Bearish Indications:
1) Bearish Ascending Wedge (Purple) (Moderate Strength): Unclean pattern as the double bottom appears to be a "Fake Out," which means this pattern may not be accurate. However possible, and because we are tickling the topside of the Bull Flag, there is a probability that we could see a sudden drop to $1738 or $1680
2) Other Bearish targets have not been reached... totally fine by me.
NO TRADE ZONE for several reasons:
1) Possible sudden drop to $1680
2) Possible fake break out, 'Fake Out'
3) Fundamentally, Vaccination likely to cause Gold price to drop, temporarily.
4) However Fundamentally, there are so many other reasons for Gold to soar, so basically, meh.
" The Big Picture"
This Bull Flag, Descending Channel, what ever you call it, is part of a bigger (potential) Bullish Pattern- Cup and Handle. which means we are in the handle. so If this analysis is accurate, I'll be looking at the Cup and Handle Target, which is super exiting! So I want to see a clear breakout of the Bull Flag, and then a likely retouch on the topside of the channel, then a move up to the ATH, and then BOOM!
Happy, safe and profitable trading to you. I appreciate your support and feedback and criticism.
Bullish Indications:
1) Bull Flag (Red): 3 touches on the topside, 3 touches on the bottom, only 2 of each required. Bull flag targets are listed in the chart. As long as price remains in the channel, Gold is bullish long term.
2) Reversal Divergence (Blue) (Moderate Strength): 2 reversal divergence signals, first one failed, however, the more these occur, the more likely they will succeed.
3) Hidden Bearish Divergence (Orange) (Weak Strength): Price has higher lows while RSI is showing lower lows.
4) TD Sequential (indicator) (not shown on the chart): Printed a Red 9 on the weekly. This shows that after 9 consistent bearish candles, a reversal is likely.
Bearish Indications:
1) Bearish Ascending Wedge (Purple) (Moderate Strength): Unclean pattern as the double bottom appears to be a "Fake Out," which means this pattern may not be accurate. However possible, and because we are tickling the topside of the Bull Flag, there is a probability that we could see a sudden drop to $1738 or $1680
2) Other Bearish targets have not been reached... totally fine by me.
NO TRADE ZONE for several reasons:
1) Possible sudden drop to $1680
2) Possible fake break out, 'Fake Out'
3) Fundamentally, Vaccination likely to cause Gold price to drop, temporarily.
4) However Fundamentally, there are so many other reasons for Gold to soar, so basically, meh.
" The Big Picture"
This Bull Flag, Descending Channel, what ever you call it, is part of a bigger (potential) Bullish Pattern- Cup and Handle. which means we are in the handle. so If this analysis is accurate, I'll be looking at the Cup and Handle Target, which is super exiting! So I want to see a clear breakout of the Bull Flag, and then a likely retouch on the topside of the channel, then a move up to the ATH, and then BOOM!
Happy, safe and profitable trading to you. I appreciate your support and feedback and criticism.
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.