Monthly Chart
On the monthly chart, we can see the price is in a very strong uptrend.
This is mainly due to fundamentals, DXY being weak with the start of Covid,
also due to the mega QE being pumped into the markets across the board,
inflating a bubble within all asset classes, here we can take advantage of this within the mega
long that will come for Metals.
If i take the Fib from the monthly high to the previous low, you can see the price is respecting
the 78.6 fib level. From backtesting, i know that Gold likes to grab liquidity from the 78.6 across all
timeframes, its a characteristic of this pair. The price is also decelerating at this region currently
The relief we are seeing is very healthy and im expecting an impulse to the 2200 region in the midterm
timeframe.
Weekly
On the Weekly chart we can see this relief clearer.
It is trading within this channel.
There is a weekly Inverse head and shoulders pattern. Price made a higher high, this is the indication. The confirmation of the bullish move is the pattern.
If i take the fib from this new high, to the previous low, price is rejecting the 78.6 once again on this timeframe which is great and adds confidence in the trade
There is also an ascending trendline to hold up the price.
Daily
On the daily we can see this higher high clearly.
Price is forming a continuation pattern in the form
of a bullish M and smaller Inverse head and shoulders.
Price also formed a double bottom and the false break of the
previous low adds confluence in the position.
Price rejected the daily 78.6 fib level and has closed
bullish.
4h
4h
Here we can see that price has formed a descending channel
this is a reversal pattern.
Price has also formed an inverse head and shoulders
followed by the Bullish M.
Price rejected the 4h 78.6 fib level nd has closed bullish
creating a new 4h high.
I am looking for a scale in at the white 78.6 fib to
trade this inverse head and shoulders inside the BM,
this is a pattern within a pattern, increasing the probability of this trade
being a winner.