Considerations below WRT Gold for the upcoming week
1. Pattern - gold seems to be carving out a wedge consolidation. The current " D" leg may have completed the "a" wave.
2. Harmonics - it is possible a bullish butterfly pattern is forming , with "D" point projection to 1075.
3. Demand zone - a horizontal demand zone between 1200 - 1210 has been present since early 2016 . Acting as support on 4 occasions and has only been broken once.
4. Trendlines - 2 significant supporting trendlines can be observed off the "C" and "D" legs. Price is likely to consolidate on a daily basis between these lines , before a breakout.
5. Moving Averages - price had broken beneath the 200 MAV 2 weeks ago and has retested it in the past week.
6. Momentum - momentum is waning ( both RSI and MACD) , and divergence is evident on the MACD.
7. Candlestick - Juxtaposed to the bearish candlestick of 2 weeks ago, is a pin bar which has been capped by the 200 MAV and supporting trendline.
9. Pivots - the traditional monthly pivot point is around 1269.
10. ATR - the weekly ATR for 2017 has been between 33 - 38 USD.
So where could gold go ?????? I'm thinking over the next few weeks gold will move up
1. Corrective "D" leg "b" wave
2. Demand zone influence
3. Trendline support present.
4. Resulting in bullish pinbar.
5. Pivot point correction to S1 - P
With this in mind , I am waiting for price to move towards 1250 - 1260 ( which could occur with the current weekly ATR) , before considering entry on the next impulsive wave "c" on a daily basis with either
a. Bearish daily candlestick
b. Trendline retest and break beneath.
Ideally both criteria.
1. Pattern - gold seems to be carving out a wedge consolidation. The current " D" leg may have completed the "a" wave.
2. Harmonics - it is possible a bullish butterfly pattern is forming , with "D" point projection to 1075.
3. Demand zone - a horizontal demand zone between 1200 - 1210 has been present since early 2016 . Acting as support on 4 occasions and has only been broken once.
4. Trendlines - 2 significant supporting trendlines can be observed off the "C" and "D" legs. Price is likely to consolidate on a daily basis between these lines , before a breakout.
5. Moving Averages - price had broken beneath the 200 MAV 2 weeks ago and has retested it in the past week.
6. Momentum - momentum is waning ( both RSI and MACD) , and divergence is evident on the MACD.
7. Candlestick - Juxtaposed to the bearish candlestick of 2 weeks ago, is a pin bar which has been capped by the 200 MAV and supporting trendline.
9. Pivots - the traditional monthly pivot point is around 1269.
10. ATR - the weekly ATR for 2017 has been between 33 - 38 USD.
So where could gold go ?????? I'm thinking over the next few weeks gold will move up
1. Corrective "D" leg "b" wave
2. Demand zone influence
3. Trendline support present.
4. Resulting in bullish pinbar.
5. Pivot point correction to S1 - P
With this in mind , I am waiting for price to move towards 1250 - 1260 ( which could occur with the current weekly ATR) , before considering entry on the next impulsive wave "c" on a daily basis with either
a. Bearish daily candlestick
b. Trendline retest and break beneath.
Ideally both criteria.