Lingrid | GOLD Weekly Price Action ANALYSIS

The gold market closed with a bullish candle. The market has been closing with a green candle for 3 weeks now. But if you look at the last 3 candles it will be clear that the market is losing momentum, which in turn can tell us about the upcoming pullback. The market has been going straight up for a few weeks, so it makes some sense for the market to move sideways for a while. It is possible that the market will move sideways for a long time. After an impulse movement there is always a sideways movement in the range 1980 - 2020 as it was in May this year. Back then the market consolidated for a month.

On the 4H timeframe the price has been consolidating for several days at the strong level, and then it broke through this resistance level, which became a support. If the price tests this level, I think the price will bounce off it. The next strong resistance level is in the zone of 2035–2038, from which the probability of a pullback is much higher. While approaching the level, the price can form a bearish wedge or triagle.

Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻

Comment:

The price perfectly fulfills my last idea. The gold market made impulse move up by breaking the range zone. The price has reached predicted resistance zone and bounced off it. The price is pulling back to support level and we have break/retest scenario. I think if the price reject the support zone at 1982-1986 then we can expect some bullish move. My goal is previous resistance zone around at 2005