We have broken structure of accumulation and have formed a SOS (sign of strength) as well as strong LPS (last point of supply) at 1800-1795.
Based off the cause and effect of the accumulation, the calculation using the PnF chart as seen below gives us a target area of 1920 - 1955.
We have had high volume sells and low volume buys however have continued an upward trend and made new highs and higher lows with a strong demand curve/line formed from the low of the spring. This fact along with Gold moving in the same direction as the DXY shows its strength over USD and possibilities for a rally upwards.
This means institutions have opened more long positions and have closed short positions with a much higher percentage of longs than shorts.
Bank participation still shows 34.5% as short and 11.3% as long, however, this changed in the recent in favour of longs with long being increase by 1.1% and shorts by 0.5% - cftc.gov/MarketReports/BankParticipationReports/deajuly21f
A potential entry could be:
Entry: Between 1800 - 1815 Stop Loss: Below 1790 Take Profit 1: 1860 Take Profit 2: 1920 Take Profit 3: 1955
This would be roughly a 1:7 R:R.
This is not financial advice Trade with caution
Trade active
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As ANKTRADER has mentioned we could also see a sharp decline, especially following CPI data. I personally don't see us breaking 1750, however, if this is the case 41 - 33 and 22 will need to be watched closely.
1H, 4H charts are giving sharp bearish divergence...
I Guess it might get go down very sharply.
Username_for_trading
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@ANKTRADER, Yes I noticed this too, indicators can be miss-leading in a trending market though. However, I have not ruled a drop below 1795 to around 1750-60 and a touch of May '19 trend line out. Below that an extension of wave 5 to 1722 which will be bank level. 1800 - 1796 will be the key area to watch as well as 1812-1815.
BitonGroup
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nice job
We also have analyzed Gold like you, whenever you have some free time check it out on our page. Our first TP is 1990
I Guess it might get go down very sharply.