The recently, experimentally drawn pattern on the yellow metal’s charts has been broken. However, note that this provides an opportunity for more charting.
First of all, if one looks at the recent almost horizontal decline, it can be spotted that there exists a short term descending pattern. Due to that reason it can be deducted that the previous pattern represented the previous junior move.
By using these facts one can draw a speculative medium scale ascending pattern, which the previous charts lacked. This chart combined with the close by simple moving averages can be used for guidance.
First of all, if one looks at the recent almost horizontal decline, it can be spotted that there exists a short term descending pattern. Due to that reason it can be deducted that the previous pattern represented the previous junior move.
By using these facts one can draw a speculative medium scale ascending pattern, which the previous charts lacked. This chart combined with the close by simple moving averages can be used for guidance.
Comment:
The yellow metal lost value against the US Dollar significantly on Tuesday, thus closing the business day with a 1.01% plunge. As a result, the commodity revealed a new junior descending pattern. This strong decline was stopped by the bottom border of a dominant ascending channel.
It is more likely that the bearish momentum continues in this session, thus sending the bears to breakout from the lower boundary of the dominant channel during the following trading sessions. The nearest support is the monthly pivot point at 1229.59. However, it is unlikely that the support level will breach today.
It is more likely that the bearish momentum continues in this session, thus sending the bears to breakout from the lower boundary of the dominant channel during the following trading sessions. The nearest support is the monthly pivot point at 1229.59. However, it is unlikely that the support level will breach today.
Comment:
The yellow metal’s price began to surge at midnight to Thursday, which lasted until the middle of the day’s trading session. However, that was not expected to last.
On the hourly chart it could be clearly observable that the commodity still remained in a junior descending pattern, whose upper trend line was set to provide resistance to the bullion. Moreover, the various hourly simple moving averages were approaching the trend line from the north.
Due to these reasons combined it is assumed that the 1,236.00 mark, where a historical low is located at, will be targeted next.
The yellow metal’s price began to surge at midnight to Thursday, which lasted until the middle of the day’s trading session. However, that was not expected to last.
On the hourly chart it could be clearly observable that the commodity still remained in a junior descending pattern, whose upper trend line was set to provide resistance to the bullion. Moreover, the various hourly simple moving averages were approaching the trend line from the north.
Due to these reasons combined it is assumed that the 1,236.00 mark, where a historical low is located at, will be targeted next.
Comment:
On Friday, the junior channel down pattern was adjusted, as it turned out that it had a slightly different shape. However, if one used the addition of the 55-hour SMA as a guide to properly confirm the change in short term directions, the move could have been caught.
During the morning hours of the day’s trading session it was clear that the rate was declining and reaching for the historical low level of 1,236.60. Until that level there were no other notable support observable, which could stop the decline of the commodity price.
On Friday, the junior channel down pattern was adjusted, as it turned out that it had a slightly different shape. However, if one used the addition of the 55-hour SMA as a guide to properly confirm the change in short term directions, the move could have been caught.
During the morning hours of the day’s trading session it was clear that the rate was declining and reaching for the historical low level of 1,236.60. Until that level there were no other notable support observable, which could stop the decline of the commodity price.
The yellow metal on Monday morning booked new high level near the 1,260.00 mark. Moreover, during the surge the pair broke the resistance of a medium term descending channel pattern.
The metal is set to continue to gain, as the bullion faces no resistance up to the 1,261.00 level. At that level the commodity price is set to meet with the resistance line of the dominant ascending long term channel.
However, for that to occur, the bullion will need additional support, which could be provided by the various simple moving averages.