GOLD has been consolidating on this purple box for the last week, with its RSI being able to breathe after hitting oversold levels.
It's now sitting at the Support Zone 2 and at an Ascending Trendline, after breaking a smaller one.
-If price breaks the consolidation box and Support Zone 2, it's very likely for us to see a continuation of the downtrend. Wait for a retest and consider a short position down to Support Zone 1;
-If it rejects this level and bounces on the Trendline, it might head to the upside with a first target at Resistance Zone 2 and then at Resistance Zone 3. In this case, wait for it to break the consolidation box and Resistance Zone 1. A good rejection candle on the Ascending Trendline could also be a good indicator for a long position.
Use stop-losses and a good risk management. Remember this is not financial advice.
It's now sitting at the Support Zone 2 and at an Ascending Trendline, after breaking a smaller one.
-If price breaks the consolidation box and Support Zone 2, it's very likely for us to see a continuation of the downtrend. Wait for a retest and consider a short position down to Support Zone 1;
-If it rejects this level and bounces on the Trendline, it might head to the upside with a first target at Resistance Zone 2 and then at Resistance Zone 3. In this case, wait for it to break the consolidation box and Resistance Zone 1. A good rejection candle on the Ascending Trendline could also be a good indicator for a long position.
Use stop-losses and a good risk management. Remember this is not financial advice.