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liquidcactus
Dec 26, 2019 12:35 AM

All that glitters is not Gold Short

GOLD / U.S. DOLLARICE

Description

While I'm bullish about Gold long term, I'm counting a triple zig zag WXYXZ that needs to play out. The recent push up touches the 1.276 extension perfectly at the .786 retrace. From here I see price consolidating towards 1400 before resuming the uptrend.

I know a lot of people think Gold has broken upwards, but I think they'll be caught out. It's a game of patience however, and if you hold your longs you'll be fine in the long run. But for me, it's a good low risk place for a short.

Merry Christmas and wishing you a prosperous 2020.

Comment

A little bit of sideways action today, but I think there is potential for one last push up. I've described my alternate count in the latest idea
Comments
ptienne16
It is also overbought
liquidcactus
@ptienne16 yes indeed it is
Jedi-FX
@liquidcactus, so it will likely reverse or at least retrace, right?
ptienne16
@Jedi-FX, It just hit the descending channel resistance after being overbought. That is a confirmed sell I would say
ptienne16
@ptienne16, let's see if it pulls back
ptienne16
@ptienne16, I mean there was a resistance around 5010-5015, not in the descending channel... After review, gold was overbought and I saw a divergence on the RSI just before the drop
ptienne16
@ptienne16, woops 1510-1515
jngforex
Interesting analysis liquidcactus,

Comfortably over the 1500 resistance and holding, however volume is still low due to the Christmas season, so patience and watching when normal volume returns will be key to the trend direction on Gold.
liquidcactus
@jngforex yes indeed, patience is key and wise to wait until a reversal is comfirmed
jngforex
@liquidcactus, totally agree with you mate
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