Here is why => The Highlighted Orange Circle is the intersection of three key rejection levels/zones.
Retest 1: Brown Trendline
Gold is overall and currently testing the brown trendline which acts as non-horizontal support.
Retest 2: Lower Blue Trendline
The lower blue trendline is the lower bound of the channel which I consider as an oversold area.
Retest 3: Green Support - 1700.0
The green level is a previous resistance turned into support and round number 1700.0
As per my trading style/plan:
I will zoom in to lower timeframes and look for reversal setups (like a , , and so on...)
For example, we can see Gold is forming a trendline in gray, so I will be waiting for a third swing to form around it to consider it valid and then buy on this last swing high break upward.
Always follow your trading plan regarding entry, risk management, and trade management.
All Strategies Are Good; If Managed Properly!
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But check out the underrated chart I published on 02/22, predicting this exact move. in GOLD.
My analysis showed gold an silver going down, but at the time (when you could actually profit from it) no-one wanted to listen, and everyone was long on GOLD & SILVER.
No worries made a nice profit on a PUT then, and now looking to BUY in.