Much capital was waiting for FOMC rate decision to be deployed. Markets seem to treating the .25% reduction as a "Hawkish Cut". Thus Gold and non-interest bearing assets dropped on the news.
Gold was already postured to correct and now it seems inevitable. Plotted is a possible "ABC", which had good "EW Structure" thus far. How deep this correction reaches will be telling for overall strength.
Previous Gold Analysis (click): <= 5 mos ago
Of course, I have had total FAILS on some ideas too, not going to pretend. But all of my plots show PRECISE entries, TIGHT stops, and EXACT targets. Precision is the way of the Fib. Almost every turn happens at a Fib Line.
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Bounce may be done here $1500 not breached. We are going into BOE rate decision news in next hour, which might tip the scales one way or the other. I am still expecting a lower low, and this may be the high before such a lower low. .
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Gold is trying to prove me wrong thus far. It has found support at the green 3.236 which happens to line up with 1500 round number. Bulls seem ready to defend it now, but let see what happens over the weekend. I am still looking for a shorting opportunity, perhaps early next week. So the higher it goes first, the better the odds of it dropping the large the profit zone. So go bulls go :)
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I may be completely wrong on this one :( It pierced some resistance and may be working on flipping into support.
Looking closer ((15 min tf) there is a clear "Pulse" or "Rhythm" to this bounce (blue fib).
Now putting that small tf Blue fib on the bigger picture: There are several zones that come into focus. Lets see if we go to the next resistance or not.
Hi Buddy, looks like gold keeps angling higher here. Are we still aiming for a short with a good entry?
EuroMotif
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@abdullahfarhan7, Hi,
Indeed, it keeps going higher.
See my last update and snapshot above, where I have mapped 3 higher resistance zones in red.
I gotta admit that I might have the direction or at least the timing wrong.
US session today, Monday, will likely set the direction for week....
abdullahfarhan7
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@EuroMotif, Probably the tensions on the Iran Saudi Arabia suitation are still making people buy Gold. FOMC did boost the $ but those are short term reactions. Fundementals are at play here. Like you said, let's see what happens in US session. Thanks as always!
MDSADI
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At what price would you think would be fair to try a sell