Kumowizard
Long

Gold - enters wide range consolidation after major correction

FX:XAUUSD   Gold / U.S. Dollar
160 0 0
I think we have seen the correction in Gold             , price has become oversold on both time frames: Daily and 4 Hrs             Slow stoch are both in oversold territory, and about to cross bullish . What else does suggest the further drop in price will be limited, and that we will rather see the "correction" of teh correction, so that Gold             will enter into consolidation? Daily Kumo is very thick, and still far below price. This means Gold             can not really become bearish for some mroe time. Future Kumo is thick and still bullish as well. However the longer term bullish momentum, the real power has been lost: Chikou Span (blue lagging line) is hitting the price wall and will likely to stay close on the price candles, Tenkan is totl flat to Kijun line, so it is almost a weak sell signal (not a short signal, rather a longer term TP sell). Daily DMI             also started to cross zig-zag with ADX coming lower, means short term we can expect undecision in both directions.
4 Hrs             Ichimoku setup is bearish , and as I expected yesterday we got more selling pressure after 1820-26 couldn't hold, but now we have arrived to an other important level. Now we have only one more big question to answer: A) will the consolidation start right above the Daily Kumo in 1300 - 1360 range, or B) will Gold             drop to the 1275-1280 Key level first and start correction from there in the Kumo, basically 1280 - 1330 range? My bet is for scenario "A", as the indicators gove that a bigger chance. I think we will see move to retest the 4 Hrs             broken trendline and the 4 Hrs             Kumo somewhere between 1335 - 1350, then very likely Gold             will continue to trade in the same 1300 - 1360 range for some more time. Trade reco: 0,5 unit long from 1305-1314 with stops below 1300, tgt             1345. (If stopped, next long attempt is 1280-1285 or the next break above 1300, in case the stop would happen due to stop hunters' false break of 1300)
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