GOLD\XAUUSD (Y20.P4.E2).Macro.Correction.
Hi All,
Looking at Gold, just like the SP500, we seeing a correction after a strong rally.
In a way, this can be seen as the handle taking place of a cup formation (refer to chart below).
If its the handle, then one would expect the correction will be some sort of pause in the trend with a continuation pattern (refer to the monthly chart below).
It can be a deep or moderate triangle or wedge or channel in most cases.
Hence I have pre-empted what this can possibly be.
With a moderate correction, at the 0.382 fib retracement ($1800), which also has a interim support level, not a strong area for support. Scenario 1
With a deeper correction, at the 0.5 fib retracement, ($1750) we have a previous strong resistance and strong support level which has confluence
with the 200 daily EMA. Scenario 2.Refer to the weekly chart below as we also have the weekly 50 EMA as confluence.
Scenario 3, refer to the monthly chart for a deeper correction.
With the US dollar going up, with potential more to go and we are looking at SP500 so far has done a moderate correction at $3230, one can anticipate a deeper correction for both Gold and SP500, really depends on the US dollar and what many say, the US elections. If Joe wins, deep correction and if Trump wins, a moderate correction.
For now, I have on the daily, a bounce here at the green zone for the scenario 1. with a potential resistance at the red historical line of xxx level.
What are your thoughts? Option 2 likely ?
Please give me a tick or like for this post.
Regards,
S.SAri
(ref. z/chart)
================================================================
3 Day chart, 10 hrs to go to close the candle, downward pressure so far
================================================================
Weekly chart, downward pressure still there, with deeper correction scenario 3
================================================================
Monthly chart, potential cup and handle, 3 scenarios.
Looking at Gold, just like the SP500, we seeing a correction after a strong rally.
In a way, this can be seen as the handle taking place of a cup formation (refer to chart below).
If its the handle, then one would expect the correction will be some sort of pause in the trend with a continuation pattern (refer to the monthly chart below).
It can be a deep or moderate triangle or wedge or channel in most cases.
Hence I have pre-empted what this can possibly be.
With a moderate correction, at the 0.382 fib retracement ($1800), which also has a interim support level, not a strong area for support. Scenario 1
With a deeper correction, at the 0.5 fib retracement, ($1750) we have a previous strong resistance and strong support level which has confluence
with the 200 daily EMA. Scenario 2.Refer to the weekly chart below as we also have the weekly 50 EMA as confluence.
Scenario 3, refer to the monthly chart for a deeper correction.
With the US dollar going up, with potential more to go and we are looking at SP500 so far has done a moderate correction at $3230, one can anticipate a deeper correction for both Gold and SP500, really depends on the US dollar and what many say, the US elections. If Joe wins, deep correction and if Trump wins, a moderate correction.
For now, I have on the daily, a bounce here at the green zone for the scenario 1. with a potential resistance at the red historical line of xxx level.
What are your thoughts? Option 2 likely ?
Please give me a tick or like for this post.
Regards,
S.SAri
(ref. z/chart)
================================================================
3 Day chart, 10 hrs to go to close the candle, downward pressure so far
================================================================
Weekly chart, downward pressure still there, with deeper correction scenario 3
================================================================
Monthly chart, potential cup and handle, 3 scenarios.
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Telegram: t.me/TprospaTradersbot
This community has signals now but with no risk management comms.
