Gold is currently at a 13 month low and key indicators are starting to show a potential trend reversal. On Balance Volume is showing a divergence over the past week. OBV is a key momentum indicator and divergences in price and indicator usually provide a reversal signal. MACD indicator is a common divergence indicator and is showing clear divergence. Also, it is showing a clear triangle formation with classic Elliot wave movements ABCDE.
The price channel of Gold has failed to touch the lower support line but instead created a horizontal support equal to the previous 13 month low on July 10th 2017. There is a strong confluence of indicators and price action that suggest a trend reversal. When the trend reverts to bullish, I expect a very strong bullish move up as volume levels are at extreme lows.
Also on the chart is my faithful Ichimoku indicator, its an indicator I have been using recently and is especially helpful for finding Elliot waves and confirmation of price trends.
I am quite confident about this one.
Trade closed: stop reached
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Breached key support zone.
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