When we look at the chart we can see that gold has dropped today. It is now at a previous level of support and resistance so it could move up from there.
The thing that I am worried about is when we look at the Fibb level of the whole upward move we see that the price went down right on the 0.618 Fibb retracement. We can also see that the price was close to the point of control of the volume of the whole down ward move we got to see at the end of the year.
So the reason why it dropped today was because of the Fibb level and because of the POC.
The reason why I think that gold will go back up is because I think that the dollar is going to drop even more. When all of the stimulus is done there will be a lot of money printing and that would make the dollar drop in value.
The thing that I would do if I took this trade is that I would put my first take profit level at the 0.618 retracement and move my stop loss to break even when we get there.
If you like the idea. Don't forget to give it a like.
Please let me know in the comments what you think of it and show your own analysis.
The thing that I am worried about is when we look at the Fibb level of the whole upward move we see that the price went down right on the 0.618 Fibb retracement. We can also see that the price was close to the point of control of the volume of the whole down ward move we got to see at the end of the year.
So the reason why it dropped today was because of the Fibb level and because of the POC.
The reason why I think that gold will go back up is because I think that the dollar is going to drop even more. When all of the stimulus is done there will be a lot of money printing and that would make the dollar drop in value.
The thing that I would do if I took this trade is that I would put my first take profit level at the 0.618 retracement and move my stop loss to break even when we get there.
If you like the idea. Don't forget to give it a like.
Please let me know in the comments what you think of it and show your own analysis.
Trade closed: stop reached