Gold's in the door of Breakout or Fakeout 🧈 EMA Analytics w/ AI
Dear Esteemed Traders,
Gold has maintained an upward trend since breaking above the 20-period EMA on October 6. This breakout coincided with a rebound from the blue support zone at the bottom. The duration of the current bullish trend is comparable to the length of the preceding bearish trend that occurred when XAU lost the upper blue support and dropped to the lower support. Refer to the ranges indicated by the white arrows. The key question now is whether gold will regain the upper support it lost on May 16. The breakout from the EMA 20/50/100/200 levels remains intact, signifying a bullish signal. Although gold experienced a retracement upon reaching the upper blue zone on October 27, it has not retreated significantly, instead consolidating and eventually finding its way back to the zone. Monitoring gold's price around this zone could present a potential breakout trading opportunity. If gold maintains the upper blue zone and reestablishes itself as support, the price could propel from this new support level to reach higher highs as depicted by the possible breakout scenario, indicated by the dotted white arrow. Conversely, if gold attempts a breakout but fails, the price could fall below the support again, potentially followed by further retracements as illustrated by the other dotted white arrow.
It's not an investment advice. The chart my generative AI's result and reflects only my opinion about the market. Do your research because the responsibility is in your hands. Not historic achivements, nor AI can guarantee future prices.
Kind Regards,
Ely
Gold has maintained an upward trend since breaking above the 20-period EMA on October 6. This breakout coincided with a rebound from the blue support zone at the bottom. The duration of the current bullish trend is comparable to the length of the preceding bearish trend that occurred when XAU lost the upper blue support and dropped to the lower support. Refer to the ranges indicated by the white arrows. The key question now is whether gold will regain the upper support it lost on May 16. The breakout from the EMA 20/50/100/200 levels remains intact, signifying a bullish signal. Although gold experienced a retracement upon reaching the upper blue zone on October 27, it has not retreated significantly, instead consolidating and eventually finding its way back to the zone. Monitoring gold's price around this zone could present a potential breakout trading opportunity. If gold maintains the upper blue zone and reestablishes itself as support, the price could propel from this new support level to reach higher highs as depicted by the possible breakout scenario, indicated by the dotted white arrow. Conversely, if gold attempts a breakout but fails, the price could fall below the support again, potentially followed by further retracements as illustrated by the other dotted white arrow.
It's not an investment advice. The chart my generative AI's result and reflects only my opinion about the market. Do your research because the responsibility is in your hands. Not historic achivements, nor AI can guarantee future prices.
Kind Regards,
Ely
Comment:
The chart's long position is in profit. Since I don't see when a breakout is coming, I'm taking some profit (+0.5%) from the long here.
Trade closed: target reached:
Gold has hit the target price of the idea. I could now close the position in profit and without drawdown because the price has been rallying ever since the creation of the idea. Congratulations if you shared the vision! Happy Trading!
