Lingrid | GOLD Weekly Market Bias

Gold rose on Friday trading day breaking through the key level of 1900 and it fixed above this level after the economic news. The price is at an interesting level at the moment. If we look at the daily candlestick it will be clear that next week we are likely to have a sideways movement because after such a massive move, the market needs a break. Another thing that is not hard to miss is the breakout of the descending channel, which is a bullish signal.

The dollar index is also going up, positively correlating with gold. Yes, this happens too, because this is a market of probabilities. The price itself has formed a very interesting pattern, which I explained in detail in the educational post. What do we have? The triangle formation has formed and the price makes a downward movement and then quickly returns as if making a fake breakout of the triangle pattern itself. This setup is bullish and probably if the price goes higher, we may see a retest of all time highs and even further movement.

I expect a more sideways movement next week and possibly a pullback to the broken 1900 level and a retest of the channel.

Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻

Comment:

The price is pulling back towards key level at 1900. The price made an impulse move breaking the resistance and downward trendline, and now the price is rolling back to retest it. The market form potential buy area near the downward trendline and key support level. I think gold might range before continue moving upwards. Hoewever if the market fall below the support area 1890 - 1900 we might have deeper pullback. My goal is the resistance around 1940.