GOLD, Triangle Forming, Bearish Breakout More Likely!

Hello Traders Investors And Community,

Welcome to this analysis where we are looking at GOLD 4-hour timeframe perspective, the recent events, the current formation building, what are likely outcomes the next times and how to handle these possibility. Since GOLD established its heavy bearishness to the downside it is now trading in somewhat a sideways movement where it has to show if more bearish pressure will follow or a reversal will show up which is the more unlikely scenario currently, therefore I detected the important levels and outcomes we should consider in GOLDs destiny now.

Looking at my chart you can watch there GOLD moving in this established triangle formation where the upper and lower boundary marked in blue and already touched several times, such formations can confirm either to the up or downside and it is from high importance to wait on the proper breakout before going in the direction. As GOLD has shown high bearish selling volume and is trading below the important EMAs the bearish breakout is at the moment more likely than the bullish one, when coming to the possibilities the bearish breakout has a 65 % possibility compared to the other 35 %, therefore we can anticipate the bearish breakout more to happen which will show up when GOLD moves below the lower boundary with a decisive bearish move and closes there, what will be good to confirm further bearish continuation is a pull-back to the lower boundary confirming it, this can be traded conservatively after the confirmation has occurred, it is also possible to enter immediately aggressive however this would be not the best option as there is still a marginal possibility given that GOLD breaks out to the upside.

The bearish breakdowns GOLD established since it formed its top some time ago should still not be kept by side as it is not unusual that there will follow more bearish pressure when these movements already established before, in this case, we should not over speculate the situation and wage the possibilities rightly, more continued bearishness visiting lower levels does not necessarily mean GOLD is completely bearish on the middle and long term as there are still some important signals to consider on the higher timeframes.

In this manner, thank you for watching, support for more market insight, good day to you and all the best!
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Information provided is only educational and should not be used to take action in the markets.