See above schematic of thought market movement - this could be exact, it could happen at different times or it could be completely wrong. Please trade with caution.
We are expecting a retrace after breaking the downward trendline to 1768, which is the golden 618 Fibonacci Retracement from 1750 - 1795. If we hit the 1740 spring and touch the May '19 trendline we should be cautious if 50 gets tested and possibly heads down making this re-distribution to hit lower lows - 1700/16xx.
If we break 50 and do not break back inside the structure this would be a confirmation. 1750-55 would need to break up.
Gold outlook is bullish as DXY is expected to drop as well as volatility is high with fundamental influences such as Basel III, Inflation Fears and Tapering talks sooner than expected.
Hi Buddy good analysis, just trying to figure out that it will retrace to 1768 before touching 1800?
Username_for_trading
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@shekharmalhotra90 if we break 97 it would be a break of structure and be considered UT/UTAD if we didn’t stay above 97 and we would head down. Basically we would be testing highs then giving signals of re-distribution to hit lower than 50/40.
shekharmalhotra90
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@Username_for_trading, thank you.
We couldn’t break 95 yesterday, does it look like it will go to test the 97 level again?