After multiple failed attempts to break above the 200 day MA, Gold looks like it could be ready for another leg down. We remain in a Bear Flag , and have managed to hold some support around the 1290 area. If we can rally up, make a higher high, and close above the 200 day MA then I would start to become bullish. But I would say it's about a 60% chance that we drop down again.
Key levels I'm watching for is anywhere on the green dotted line support for a possible bounce, or below this the .786 Fib level. Zooming out on this chart you can see that Gold is possibly forming an Ascending Triangle, but the pattern needs to complete and breakout to confirm it. As long as we can get a decent bounce from the levels I mentioned, I will start to become bullish for Gold in the medium to long term.
Key levels I'm watching for is anywhere on the green dotted line support for a possible bounce, or below this the .786 Fib level. Zooming out on this chart you can see that Gold is possibly forming an Ascending Triangle, but the pattern needs to complete and breakout to confirm it. As long as we can get a decent bounce from the levels I mentioned, I will start to become bullish for Gold in the medium to long term.
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Not much to say about GOLD, still looking for a drop out of this Bear Flag. I see a lot of wicks and Shooting Star candles which confirms that the sell pressure is still there.
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GOLD 0.78% has been showing some good strength today, we've just pushed past the 200 Day MA so lets see if we can close above it and make a higher high. I'm cautious until that point because we could still be in a Bear Flag . But it's a good move from the bulls and we could start to continue up and form this Ascending Triangle .
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Bulls failed, I expect it was a short squeeze before a drop confirming that we were in a Bear Flag. Lets see if the green dotted support line can hold us up, which could be a potential buy.
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We're right at the trend line so I'm waiting to see if we can get a bounce anywhere between here and the 0.786 line. Waiting for the daily RSI to become oversold which has historically resulted in a bounce.
We're right at the trend line so I'm waiting to see if we can get a bounce anywhere between here and the 0.786 line. Waiting for the daily RSI to become oversold which has historically resulted in a bounce.
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You can see that the RSI has been a good indicator for GOLD -2.28% when it bounces from oversold conditions. However, relying on just this can be dangerous. As you can see in November 2017, we were oversold for almost 2 months but we continued to capitulate. So what I am looking is a bounce, a small amount of consolidation on the hourly time frames and then another breakout confirming a trend reversal. Tight stop losses are important with these types of trades in case we repeat what happened in November and continue to drop. If we get stopped out, it's no biggie as we will look for the same opportunity again
I am not a financial advisor so please do your own due diligence before entering trades, good luck :)
You can see that the RSI has been a good indicator for GOLD -2.28% when it bounces from oversold conditions. However, relying on just this can be dangerous. As you can see in November 2017, we were oversold for almost 2 months but we continued to capitulate. So what I am looking is a bounce, a small amount of consolidation on the hourly time frames and then another breakout confirming a trend reversal. Tight stop losses are important with these types of trades in case we repeat what happened in November and continue to drop. If we get stopped out, it's no biggie as we will look for the same opportunity again
I am not a financial advisor so please do your own due diligence before entering trades, good luck :)
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One thing to take into consideration is the death cross between the 50 and 100 day MA. You can see that when we rallied up to the moving averages, we quickly dropped down when they crossed. This is a very bearish sign and you can see how far we dropped when this happened in November. Lets see if it will have as much of an impact this time round, which is not guaranteed.
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New Update:
