As we know, the gold price has been rising dramatically for a while. And now, we face our first drop after the crazy rising.
What happened?
There were some clues for this drop, as we can see the dead cross already formed before the drop and the Bollinger Bands widened.
So now, where would the price go?
First, let’s collect all the signals here.
The Bollinger bands widen again, which means we would meet some big changes. The price just touches the band, so there must be pressure. Every touch between price and Bollinger bands could be a support or resistant point. So, what about this one?
I would say it could be a support point.
The MACD shows no bullish signal, however, the MACD could be lagging. The RSI shows an oversold signal. So, it could be a chance.
Based on previous rising, the price just retraced back to 0.5 Fib level. It could be more, even to 0.618. I believe it is a retracement and the price could go back to an upward trend.
I know the signals are not clear, so let’s expect more signals.
What happened?
There were some clues for this drop, as we can see the dead cross already formed before the drop and the Bollinger Bands widened.
So now, where would the price go?
First, let’s collect all the signals here.
The Bollinger bands widen again, which means we would meet some big changes. The price just touches the band, so there must be pressure. Every touch between price and Bollinger bands could be a support or resistant point. So, what about this one?
I would say it could be a support point.
The MACD shows no bullish signal, however, the MACD could be lagging. The RSI shows an oversold signal. So, it could be a chance.
Based on previous rising, the price just retraced back to 0.5 Fib level. It could be more, even to 0.618. I believe it is a retracement and the price could go back to an upward trend.
I know the signals are not clear, so let’s expect more signals.