Gold is on my watchlist for the coming week, as always, I focus on assets I want to trade during the week.
We have seen a Major SUPPORT ZONE around February, 2020, and a retest creating a consolidation to the SUPPORT ZONE around April - May of 2020, a successful break-out seeing the price rally to the ATH in 2020 with a steady decline to the SUPPORT ZONE in November 2020.
Fast forward to the current PRICE ACTION, we see a consolidation and a Bullish break out at the SUPPORT ZONE that occurred around November 2020. A second consolidation is ongoing at the SUPPORT ZONE which I expect a break below with strong Bearish Candle, also if you look closely at the 200 EMA which there was a rejection from the previous candle before the candle which eventually broke below the Dynamic Support, the consolidation just below the support is a valid confirmation when you add the DOTS together.
Things to note;
1) SUPPORT ZONE from November 2020, there is consolidation currently happening at the SUPPORT ZONE.
2) Dynamic Support now Resistance with consolidation acting below it.
A successful break out of the consolidation forcing the price to sell below the SUPPORT ZONE from November 2020, we will see the price rallying to the next SUPPORT from February 2020.
Another clear break below February 2020 ZONE should see GOLD rallying to 1572.
We have seen a Major SUPPORT ZONE around February, 2020, and a retest creating a consolidation to the SUPPORT ZONE around April - May of 2020, a successful break-out seeing the price rally to the ATH in 2020 with a steady decline to the SUPPORT ZONE in November 2020.
Fast forward to the current PRICE ACTION, we see a consolidation and a Bullish break out at the SUPPORT ZONE that occurred around November 2020. A second consolidation is ongoing at the SUPPORT ZONE which I expect a break below with strong Bearish Candle, also if you look closely at the 200 EMA which there was a rejection from the previous candle before the candle which eventually broke below the Dynamic Support, the consolidation just below the support is a valid confirmation when you add the DOTS together.
Things to note;
1) SUPPORT ZONE from November 2020, there is consolidation currently happening at the SUPPORT ZONE.
2) Dynamic Support now Resistance with consolidation acting below it.
A successful break out of the consolidation forcing the price to sell below the SUPPORT ZONE from November 2020, we will see the price rallying to the next SUPPORT from February 2020.
Another clear break below February 2020 ZONE should see GOLD rallying to 1572.