Last Friday session has printed on a daily TF a bearish hanging man candlestick pattern, which, even though has a successful rate of 70%, could make a "wake up call" for buyers.
Additionally the great weekly pin-bar printed two weeks ago makes me think that bullish pattern is coming to an end for the medium term, at least till end of June.
On higher TF gold is approaching ATH since 2012: this establish a great supply zone from 1720 up to 1798 and in extension 1900, so long trade should be taken considering any possible huge sell off as already happened in 2012.
Previous statement goes hand in hand with the lower TF analysis: on 4hr TF and lower, gold has been hardly rejected from 1730 to 1748 zone, easily passing through 1720 support on friday, landing to 1710 and bouncing back up; the fast recovery, yet is seen as a great demand zone at that level but also it is also important to consider the quickness in selling at 1730 zone piercing the support below.
As a matter of fact, the daily hanging man is usually seen bearish although the recovery taken, since is an alarm bell that Bears are on edge of the door waiting to trap Bulls.
Last but not the least, the bear divergence on RSI.
So, concluding, I am expecting a possible spike on Monday or Tuesday even to 1755-1765 then a huge sell off could create a daily pin-bar and the final leg down before the 2000 dollar during summer.
Not trading advice
Best wishes
Additionally the great weekly pin-bar printed two weeks ago makes me think that bullish pattern is coming to an end for the medium term, at least till end of June.
On higher TF gold is approaching ATH since 2012: this establish a great supply zone from 1720 up to 1798 and in extension 1900, so long trade should be taken considering any possible huge sell off as already happened in 2012.
Previous statement goes hand in hand with the lower TF analysis: on 4hr TF and lower, gold has been hardly rejected from 1730 to 1748 zone, easily passing through 1720 support on friday, landing to 1710 and bouncing back up; the fast recovery, yet is seen as a great demand zone at that level but also it is also important to consider the quickness in selling at 1730 zone piercing the support below.
As a matter of fact, the daily hanging man is usually seen bearish although the recovery taken, since is an alarm bell that Bears are on edge of the door waiting to trap Bulls.
Last but not the least, the bear divergence on RSI.
So, concluding, I am expecting a possible spike on Monday or Tuesday even to 1755-1765 then a huge sell off could create a daily pin-bar and the final leg down before the 2000 dollar during summer.
Not trading advice
Best wishes