Gold has been pretty predictable lately. Every time it went oversold it was time to buy, and every time it moved back to value it was time to sell. Right now we are in oversold condition. Another typical pattern for gold has been retracing 78.6% of the previous high. That is where I want to take profit because although the current pattern looks like a massive trend reversal, it is too soon to tell if Gold can actually reverse this downtrend.
Bullish divergences appear everywhere, on every indicator from the weekly to the daily chart. There is also an inverted head and shoulders pattern on the 4H chart which helps with the timing.
I would look for 1160 in the medium term, but who knows, maybe this will be a multi year bottom, however I don't want to bet my money on that.
Bullish divergences appear everywhere, on every indicator from the weekly to the daily chart. There is also an inverted head and shoulders pattern on the 4H chart which helps with the timing.
I would look for 1160 in the medium term, but who knows, maybe this will be a multi year bottom, however I don't want to bet my money on that.
Trade closed: target reached
