WHICH ARE THE POSSIBLE SCENARIOS FOR GOLD?
Hello traders,i hope you had a great trading month,let's see what's in store for gold.
As i said at my previous article concerning Gold(attached below) we had a retracement at 1,210 level and a Bullish Gartley pattern completion which already gave us huge profits hitting target 1 and target 2.
So now what's the possible scenarios for Gold?
TECHNICAL POINTS
1.We can see at the chart the 3 channels.We have the red ascending long term channel,the mid-term blue ascending channel and last the short-term descending blue channel.
2.Price is trying to re-establish the red ascending channel to change it's mid-term trend bullish.
3.Price seems to have validate the critical area of 1,262-1,250 $ per ounce to turn it's short-term trend bullish.
4.A move above the resistance area will validate the mid-term change to bullish bias.
5.A move above previous highs at 1,296$/ounce will change the long term trend to bullish.
6.We can see also that price passed the crtical area of the 61,8% Fibonacci retracement from the highs of 1,296$/ounce and it's heading to 78,6% Fibonacci retracement at 1,276$/ounce where it found resistance enpugh times at the past as i highlighted at the chart with the red arrows.So this is still considered as a deep retracement to the bearish trend.
7.We have big RSI bearish divergence.
8.We also have Stochastics at overbought levels.
9.We have bearish price action with a pin-bar canlde.
10.A retracement is expected as we have reached the top of the short-term ascending channel.
11.We also have at 1,270$/ounce the critical 1.618% Fibonacci extension of the last retracement.
SCENARIOS
BEARISH SCENARIO A
)Because all the above technical observatoins this bearish scenario is more possible.
I expect a retracement to 1,250$/ounce and then an upward move to 1,276 and if that level doesn't hold then i am expecting a test of the previous highs of 1,296$/ounce.
BEARISH SCENARIO B)
This bearish scenario is less possible except if we there are geopolitical tensions such as N.Korea-U.S-China nuclear missiles issue,
we might see a more shallow retracement to 1,260-1,262$/ounce level and then an upward move to 1,276$/ounce level.If that breaks scenario remains the same as the bearish scenario A.
BULLISH SCENARIO C)
An upward move to 1.276$/ounce and a small retracement to 1,270$/ounce before we reach the 1,296$/ounce level.After that a healthy retracement to 1,276$/ounce level and an upward rally reaching first significant resistance of previous structure and Fibonacci extensions at 1,315-1,320$/ounce level.
THANKS FOR SUPPORT
KEEP FOLLOWINGF FOR MOR3E PROFITS!
HAPPY TRADING!
As i said at my previous article concerning Gold(attached below) we had a retracement at 1,210 level and a Bullish Gartley pattern completion which already gave us huge profits hitting target 1 and target 2.
So now what's the possible scenarios for Gold?
TECHNICAL POINTS
1.We can see at the chart the 3 channels.We have the red ascending long term channel,the mid-term blue ascending channel and last the short-term descending blue channel.
2.Price is trying to re-establish the red ascending channel to change it's mid-term trend bullish.
3.Price seems to have validate the critical area of 1,262-1,250 $ per ounce to turn it's short-term trend bullish.
4.A move above the resistance area will validate the mid-term change to bullish bias.
5.A move above previous highs at 1,296$/ounce will change the long term trend to bullish.
6.We can see also that price passed the crtical area of the 61,8% Fibonacci retracement from the highs of 1,296$/ounce and it's heading to 78,6% Fibonacci retracement at 1,276$/ounce where it found resistance enpugh times at the past as i highlighted at the chart with the red arrows.So this is still considered as a deep retracement to the bearish trend.
7.We have big RSI bearish divergence.
8.We also have Stochastics at overbought levels.
9.We have bearish price action with a pin-bar canlde.
10.A retracement is expected as we have reached the top of the short-term ascending channel.
11.We also have at 1,270$/ounce the critical 1.618% Fibonacci extension of the last retracement.
SCENARIOS
BEARISH SCENARIO A
)Because all the above technical observatoins this bearish scenario is more possible.
I expect a retracement to 1,250$/ounce and then an upward move to 1,276 and if that level doesn't hold then i am expecting a test of the previous highs of 1,296$/ounce.
BEARISH SCENARIO B)
This bearish scenario is less possible except if we there are geopolitical tensions such as N.Korea-U.S-China nuclear missiles issue,
we might see a more shallow retracement to 1,260-1,262$/ounce level and then an upward move to 1,276$/ounce level.If that breaks scenario remains the same as the bearish scenario A.
BULLISH SCENARIO C)
An upward move to 1.276$/ounce and a small retracement to 1,270$/ounce before we reach the 1,296$/ounce level.After that a healthy retracement to 1,276$/ounce level and an upward rally reaching first significant resistance of previous structure and Fibonacci extensions at 1,315-1,320$/ounce level.
THANKS FOR SUPPORT
KEEP FOLLOWINGF FOR MOR3E PROFITS!
HAPPY TRADING!
Trade active
Comment:
As we saw market did what exactly bearish scenario A i was expecting to do...
