Today's plan is exactly same as yesterday
lease note: This is a personal journal only, but NOT a trading suggestion.
Current price: 1755
===================Analysis=================
On Last Friday, Gold reached 1780 to complete wave-c due to the effect of NFP news, but then reversed quickly and down to 1751 in the early morning of today.
Now it brings a confusing question, is it bullish or bearish?
Let's list a few facts in order to draw the conclusion:
1. Gold broke the big descending trendline, and retest it at point B ==> bullish signal
2. The H4 candle broke 1768 resistence once and touched 1780, but dropped back again in next H4 candle ==> weak or fake breakout
3. The daily bar closed as cross last Friday ==> reverse signal
4. 1746 - 1750 area have been a strong support area since last week. ==> bearish confirmation point
So, we can see both bear or bull effects, but neither of them is confirmed, which indicates that we are still in the Ranging Market. Usually once a complete 8-wave cycle finished, there will be a period of chaos of future direction.
Because the last drop is dip and straight (1780 -> 1751), we can expect in short term (which means intraday), some corrections might happen.
And the key resistence for this range is: 1765 , 1770
lease note: This is a personal journal only, but NOT a trading suggestion.
Current price: 1755
===================Analysis=================
On Last Friday, Gold reached 1780 to complete wave-c due to the effect of NFP news, but then reversed quickly and down to 1751 in the early morning of today.
Now it brings a confusing question, is it bullish or bearish?
Let's list a few facts in order to draw the conclusion:
1. Gold broke the big descending trendline, and retest it at point B ==> bullish signal
2. The H4 candle broke 1768 resistence once and touched 1780, but dropped back again in next H4 candle ==> weak or fake breakout
3. The daily bar closed as cross last Friday ==> reverse signal
4. 1746 - 1750 area have been a strong support area since last week. ==> bearish confirmation point
So, we can see both bear or bull effects, but neither of them is confirmed, which indicates that we are still in the Ranging Market. Usually once a complete 8-wave cycle finished, there will be a period of chaos of future direction.
Because the last drop is dip and straight (1780 -> 1751), we can expect in short term (which means intraday), some corrections might happen.
And the key resistence for this range is: 1765 , 1770
