Precious metals and specifically GOLD has printed the strange and exotic patterns recently.
This ascending contracting channel on the chart was quite uncharacteristic because it was so impulsive moving out of it and moved so far.
But in the end it would seem that it was an ascending wedge like any other - with a bearish outcome.
Generally ascending channels will one way or the other see price fall below the lower trendline and I have extended the trendlines on the chart so you can see that has happened already and in GOLD has fallen below.
But the big clue here is (as always) momentum.
The last 2 bearish candles are much more impulsive than any recent bullish candles.
In addition GOLD has reversed in the Golden Window that is so common for reversals of 0.618 - 0.786, but that said it is very unusual for GOLD to reverse so close to the upper fib.
It also moved a fair way beyond the 1:1 trend extension which now that it has reversed shows that the trend was quite overextended and what conclusion can be drawn from that I'm not exactly sure but i'll be taking note of whatever it is when it is revealed.
Quite a weak doming before the collapse which is now a SRP shakeout reversal pattern through the 2011 Top Resistance, trapping buyers trading the breakout and stopping out shorters that had there stop losses there - all liquidity games.
An interesting paradox with GOLD is that it is a complex and trappy chart but yet it attracts technically inept or unaware buy-and-holders and both of these will be getting quite frustrated here.
These unwitting traders buy when they see growth and so many will have been getting greedy while GOLD has been rallying, social media has been very pro GOLD, the conspiracy guys are shilling it, the banks are supposedly buying it up...
And if thats you getting frustrated, you always have the opportunity to rise above the herd and learn TA rather than continuing to try your luck only to find the marker outsmarts you time and time again.
Right here in terms of techncials I would suggest that it is not at all clear if GOLD will rally or perhaps even find lower lows. We'll need to see more. But if it does find lower lows then GOLD may see $1.4K or perhaps even lower.
Not advice.
This ascending contracting channel on the chart was quite uncharacteristic because it was so impulsive moving out of it and moved so far.
But in the end it would seem that it was an ascending wedge like any other - with a bearish outcome.
Generally ascending channels will one way or the other see price fall below the lower trendline and I have extended the trendlines on the chart so you can see that has happened already and in GOLD has fallen below.
But the big clue here is (as always) momentum.
The last 2 bearish candles are much more impulsive than any recent bullish candles.
In addition GOLD has reversed in the Golden Window that is so common for reversals of 0.618 - 0.786, but that said it is very unusual for GOLD to reverse so close to the upper fib.
It also moved a fair way beyond the 1:1 trend extension which now that it has reversed shows that the trend was quite overextended and what conclusion can be drawn from that I'm not exactly sure but i'll be taking note of whatever it is when it is revealed.
Quite a weak doming before the collapse which is now a SRP shakeout reversal pattern through the 2011 Top Resistance, trapping buyers trading the breakout and stopping out shorters that had there stop losses there - all liquidity games.
An interesting paradox with GOLD is that it is a complex and trappy chart but yet it attracts technically inept or unaware buy-and-holders and both of these will be getting quite frustrated here.
These unwitting traders buy when they see growth and so many will have been getting greedy while GOLD has been rallying, social media has been very pro GOLD, the conspiracy guys are shilling it, the banks are supposedly buying it up...
And if thats you getting frustrated, you always have the opportunity to rise above the herd and learn TA rather than continuing to try your luck only to find the marker outsmarts you time and time again.
Right here in terms of techncials I would suggest that it is not at all clear if GOLD will rally or perhaps even find lower lows. We'll need to see more. But if it does find lower lows then GOLD may see $1.4K or perhaps even lower.
Not advice.
I'm somewhat quiet on TView for now but you can find me pumping content every day in my Telegram Trading Group 🧐
Part 2 of the fortnight video now uploaded to the group: 27th May - Crypto focus😼.
$50 per month 👍🏻.
Contact: t.me/dRends35
Part 2 of the fortnight video now uploaded to the group: 27th May - Crypto focus😼.
$50 per month 👍🏻.
Contact: t.me/dRends35