Gold has been experiencing a recent drop in price, which saw it test the ascending trend line on a 4-hour chart. After retracing to the 50% Fibonacci level, the market broke below the trend line yesterday and is currently testing a supply area. If the price also breaks this area, it may indicate a bearish continuation, providing a good opportunity for a short order.
In technical analysis, the 50% Fibonacci retracement level is considered an important support level, and a break below this level can signal a potential trend reversal. In this case, the recent break below the ascending trend line and testing of the supply area suggest that the trend may be shifting to the downside.
However, recently the main trend has been bullish and is always riskier to trade against the main trend specially on the last trading day of the week.
In conclusion, while a break below the supply area in the current scenario may indicate a bearish continuation, traders should exercise caution and monitor the market closely to confirm the trend before entering a short order.
In technical analysis, the 50% Fibonacci retracement level is considered an important support level, and a break below this level can signal a potential trend reversal. In this case, the recent break below the ascending trend line and testing of the supply area suggest that the trend may be shifting to the downside.
However, recently the main trend has been bullish and is always riskier to trade against the main trend specially on the last trading day of the week.
In conclusion, while a break below the supply area in the current scenario may indicate a bearish continuation, traders should exercise caution and monitor the market closely to confirm the trend before entering a short order.
Comment:
bounce over the support area
Comment:
www.tradingview.com/x/oFvUEzeC/w waiting for a clear breakout
Comment:
perfect call
