Gold has more downside before pushing up to $2,000 again!

COMEX:GC1!   Gold Futures
Gold markets got shaken up today and it just seems like the beginning of a slightly lower move in this market.

Watching this futures 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 descending triangle 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 support level 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 volume profile 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 descending triangle 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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Good gob
my Analysis:
+2 Reply
That wick is powerful rejection,I see that support area as a strong demand zone.I am no market guru but my opinion is it is too early to go short.I'm not saying this bull-trend is invincible.Still it would make sense that "the big boys" want retail traders to sell in reaction to such a bearish Monday,be proactive not reactive,I really think it is too obvious and too enticing,just ike that apple in the Oculus movie.Just my humble opinion
+2 Reply
@REDPILL10X6, no problem with being on the side lines, you never lose a trade you don't take. Our strategy has limited risk with high probability setups, so even if we are dead wrong it won't cost us a lot of capital. No one knows anything better than you, it's all just opinion and ideas. How you manage the execution is the difference maker. One of my personal quotes to our trading room - "no one knows where she goes, but I know I'll be on for the ride". Have a good one, thanks for the chat.
+1 Reply
We too have similar vision
+1 Reply
all the best
+1 Reply
perfect analysis
+1 Reply
Very nice analysis.
+1 Reply
Amazing work.
+1 Reply
A waterfall to $1,803 is marginally in play this week

+1 Reply
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