Greetings, readers. Bearish AB=CD pattern has formed near the long term resistance zone. On the hand, this is a double downside pressure which hopefully we will see some correction on the sustained rally since last year.
On the other hand, the long term resistance zone has been tested 3 times since the last failed one on July, 2016. The price accumulates inherent strength that with high probability the resistance will break next time.
For now, I'm expecting a shallow to medium retrace up to the 0.328 to 0.5 area of the whole AB=CD pattern, then potentially reverses to the upside.
Please comment, like my idea or share yours, much appreciated!
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Another version based purely on support and resistance.
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Watching the long term resistance zone for any breakthrough. I'm currently bullish on Gold, let's see if we go any opportunity to break to the upside (aggressive traders may want to trade the breakthrough) or heading down so that we can reload our long position.