GOLD, Descending-Triangle-Formation, Preparing For Relief-Rally!

Hello Traders Investors And Community,

Welcome to this analysis about GOLD, we are looking at the 4-hour timeframe perspective. In my former analysis of GOLD I already mentioned that GOLD is likely to form a relief-rally within its established structure as it moved into important support zones. Now recently GOLD made this bear-trap below the 1760 level and snapped back into the range which is an important event in the structure because it can be the source of the actual relief-rally that will emerge in the upcoming times. Now it is necessary to do not rush into set conclusions and overspeculate the market into a one-sighted direction, therefore I detected the fundamental underlying formation and what scenarios we should consider in GOLDs upcoming developments.

As when looking at my chart now we can watch there how GOLD snapped back into its previous range after forming the bear-trap below the 1760 level. This resulted in an initial rally that did not yet had the ability to convert into a full reversal and is now running directly into this dedicated resistance-cluster that is marked in red in my chart where several resistances coming together consisting of the upper-boundary of the formation, the horizontal resistance in red and also the 35-EMA in red. All these resistances in the resistance-cluster indicate the wave E in the major wave-count to emerge from this point, this wave E will complete the whole ABCDE-wave-count and will approach the dynamic-support-zone marked in orange again.

Taking these factors into the consideration now GOLD when it continues with this decisive wave-count as it is marked in my chart ahead of the next times can complete the descending-triangle-formation when it manages to bounce in the structure and breakout above the upper-boundary of the descending triangle. Such a development will be the origin of the actual relief-rally with increased continuations and approaching of the next levels, which does not necessarily mean GOLD is already completely bullish however this relief-rally should not be expected as it can trap the bears with stop losses above the descending-triangle. And when the relief-rally shows up the upper resistance marked in blue will be tested sooner or later.

In this manner, thank you for watching my analysis about GOLD and the decisive descending-triangle-formation that has the potential to be the source of the upcoming relief-rally; will be great when you support it with a like and follow or comment, great contentment for everybody supporting, all the best!
"There are many roads to prosperity, but one must be taken."

Information is only educational and should not be used to take action in the market.