This is the highest Gold has ever been! After price action reached $2075.28 it started to print LHs & LLs to close out last trading week at $1951.19. I am in bear's favor for now so let's build up confluence.
Confluence (3 or more):
1. Strong rejection from Monthly perspective ending with long wick in bear's favor.
2. Order block formed at high end of the curve.
3. P.A. respected 1st test of order block.
4. Over-extended commodity
In the event it goes against your initial plan, remain flexible. If the bull's were to reenter the market I would look for a clean B.A.R. of the $2075.28 level. However, even with a break it can still tank before heading higher up due to the zone that's being broken since it was derived from a H.T.F. so it wouldn't be the best decision to risk a lot on buy orders. THIS IS NOT TRADING ADVICE!!!
If the bears happen to push price further down then I would utilize the P.P.Z. ($1746.43) as a take profit area along with entries for new orders since there's been significant reactions with price in that particular area dating back some years. I would look to see if the Weekly diagonal support along with the H.T.F. liquidity zone will be reached if it breaks below the P.P.Z. We shall see...
Also, if my analysis help YOU in any way, shape or form then please consider donating to the cause. It's appreciated.
Confluence (3 or more):
1. Strong rejection from Monthly perspective ending with long wick in bear's favor.
2. Order block formed at high end of the curve.
3. P.A. respected 1st test of order block.
4. Over-extended commodity
In the event it goes against your initial plan, remain flexible. If the bull's were to reenter the market I would look for a clean B.A.R. of the $2075.28 level. However, even with a break it can still tank before heading higher up due to the zone that's being broken since it was derived from a H.T.F. so it wouldn't be the best decision to risk a lot on buy orders. THIS IS NOT TRADING ADVICE!!!
If the bears happen to push price further down then I would utilize the P.P.Z. ($1746.43) as a take profit area along with entries for new orders since there's been significant reactions with price in that particular area dating back some years. I would look to see if the Weekly diagonal support along with the H.T.F. liquidity zone will be reached if it breaks below the P.P.Z. We shall see...
Also, if my analysis help YOU in any way, shape or form then please consider donating to the cause. It's appreciated.
Comment:
If P.A. blow pass the $1885 level then I would wait for a retest and my next stop would be $1950. NOT TRADING ADVICE!