[WSB] Gold is moving in Corrective Patterns - What's next?
Gold (XAUUSD) is easily one of my most traded assets, since the price tends to move in corrective patterns that are very common
in the market and easy to spot. The strong surge of the past years makes it even easier to make a decision for the right
side of the trade. As long as we don't see any reversal pattern, the price is still in an uptrend.
The price is moving in a Bull-Flag after aiming for the $2.000 level, which acts as a psycologial resistance as well.
The Bull-Flag is built of Lower Highs and Lower Lows. The price is still moving in this pattern, even if some of us thought
that we successfully broke out of the flag a few weeks ago. But the price revisitied the important $1.780 level again
and is now looking for a short-term bounce.
I'm expecting the gold price to look for another lower low, followed by a higher low and finally a break above the previous high.
I consider a long position at the lower low. Depending on the strength of the move, we might see a deeper correction,
which would not align with the "economical situation" (inflation, instability).
Everything else is explained on the chart. Please let me know what you think about this idea and how is your opinion on gold as an investment?
cheers,
Ares
in the market and easy to spot. The strong surge of the past years makes it even easier to make a decision for the right
side of the trade. As long as we don't see any reversal pattern, the price is still in an uptrend.
The price is moving in a Bull-Flag after aiming for the $2.000 level, which acts as a psycologial resistance as well.
The Bull-Flag is built of Lower Highs and Lower Lows. The price is still moving in this pattern, even if some of us thought
that we successfully broke out of the flag a few weeks ago. But the price revisitied the important $1.780 level again
and is now looking for a short-term bounce.
I'm expecting the gold price to look for another lower low, followed by a higher low and finally a break above the previous high.
I consider a long position at the lower low. Depending on the strength of the move, we might see a deeper correction,
which would not align with the "economical situation" (inflation, instability).
Everything else is explained on the chart. Please let me know what you think about this idea and how is your opinion on gold as an investment?
cheers,
Ares
Comment:
Here's one of my trading ideas from January 2020 with a similar situation, even though we saw a Golden Cross instead of a Death Cross
Comment:
Working out very well so far
