Strong Uptrend market for gold , in fact we’ve seen price hitting all time highs in the process. Based on Waves Principles, we have completed the 3rd wave of that super cycle and we should start to see some correction in the market (consolidation) which is also clear based on the market structure in the last 2 months. Analysis of the is also providing confluence of a heavily over bought market. therefore I wouldn’t be surprise to see the market revisit the $1800s or even lower.
A clearer representation of the market structure can be seen here where price has seem to have found some support around $1950.00. Therefore this will be the area of interest to pay close attention to for any close below in the coming weeks.
A closer look on the has put together in context a lot of what we identified on the higher timeframes. We are seeing a triangle formation completed, which also provides additional confluence to an imminent market. This current market structure in addition to price action from the monthly and weekly would make a short trade the direction with least resistance.
My overall bias is still SHORT and to see price action hitting $1800.00 I've labeled the areas based on what I will be anticipating.
An entry will be taken only if all rules of my strategy are satisfied.
Add this pair to your watchlist and see if the rules of your strategy provides an entry.
Like and Comment your thoughts . All feedbacks are welcome.
If you are new to FOREX trading, here are the definition for words you may seen mentioned above.
Price Action: Change in the price value of a traded instrument whether Forex, or Indices.
Market Structure: This is classified as any group of placed together with the use of Support, Resistance and . once grouped they would provide a pattern to indicate a possible movement in price action.
Support: Areas in the market where price tends to reverse after a sell off (lower price action)
Resistance: Areas in the market where price tends stop, pause or reverse after bull run (higher price action)
Uptrend: price action in the market creating a series of high highs and higher lows.
Downtrend: price action creating a series of lower lows and lower highs Long: Taking a position to buy the base currency
Short: Taking a position to sell the base currency.