Watching this market, we saw a recent low almost get tested at the $1,885 area today on a HUGE wick and got absorbed by buyers. That doesn't mean that this downside is over and done with and we can see gold back into the $2,000 area.
There is a huge that is shaping up, lower highs, and equal lows. This means that the sell-side is holding out whatever buyers are trying to get into the market. The buy-side needed to see higher highs break and push to the upside rather than just holding out the support.
Meaning from here we had a huge wick that formed a month or so ago and touched the $1,875. Today's recent price action touched $1,885 so slightly higher.
There are two things that we need to see for a deeper pullback:
1. Break of the $1,875 level
2. Close under $1,900.
From here there are 2 immediate downside targets.
The first is at $1,810 because of the large stack the most immediate "noise" level of support that is under $1,900. The second is at $1,760 where the start of the next consolidation level is, this is where the cluster of support starts to form and should hold temporarily at least before we see a push back to $2,000. Gold moves really well into ranges before making a strong move to either end.
There is key resistance to note as well. The first area is $1,940 the prior broken low, the next $1,965 or so where the starts to shape out.
This trade idea is for educational purposes only, should not be taken as investment or trading advice.
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