Good Day Traders !! On Gold as we expected the price dropped to the demand Zone and broke the trend line ! On the Monthly timeframe we have an overextended W formation and we just tested and rejected the neckline. Down on the weekly timeframe we have an "M" formation and we have confluence between the neckline of the weekly and Daily "M" formations. Also it happens that the neckline on the daily timeframe is exactly the 0.618 Fib retracement on the previous leg. With all of that being said we are looking at a potential opportunity for long in the short and mid term for gold. From an institutional perspective we have hedge funs and non commercials institutions adding a massive amount of long position on gold and this impulse to the downside could be considered as an accumulation of liquidity before the real launch.
Now if you enjoyed this analysis smash that like button and share. If you have a different opinion please leave a comment below as I would love to get more insights and ideas. I also linked my previous idea about this asset.
Trade safe !!!
Now if you enjoyed this analysis smash that like button and share. If you have a different opinion please leave a comment below as I would love to get more insights and ideas. I also linked my previous idea about this asset.
Trade safe !!!
Trade closed: target reached
