Today we are going to analyze the current critical situation gold is entangled with. Looking at the chart, we can see an uptrend channel (demonstrated by green trendlines) that we are trading from November 2022 till present date. Now, as the circumstances prevail we might have a possible breaking of the channel structure since we retested the channel lower trendline yesterday. However, we must wait for a clear breakout to sell further but on smaller timeframe we are witnessing a break and retest of a consolidatory structure as demonstrated by the graphic below:
Look at that symmetrical triangle consolidatory structure that broke and retest a few hours ago now we have the following conditions at hand:
1- Break and retest of the consolidation structure telling us a starting of a new bearish wave which might hit the green trendline again. This implication is valid as long as we do not break out of 1985.
2- Upper channel being retested but we cannot sell for long term to the target indicated on the chart because the channel has not been broken yet just retested.
3- Should the channel break, we shall have an extremely full of opportunity breakthrough to go short for long term.
4- Monthly may complete as a shooting star, if it happens so, it will be a further indication that we may be looking at a reversal:
All the best for your trades, Happy trading :-)
Do not make rash decisions, only enter with confirmation through a breakout!
Look at that symmetrical triangle consolidatory structure that broke and retest a few hours ago now we have the following conditions at hand:
1- Break and retest of the consolidation structure telling us a starting of a new bearish wave which might hit the green trendline again. This implication is valid as long as we do not break out of 1985.
2- Upper channel being retested but we cannot sell for long term to the target indicated on the chart because the channel has not been broken yet just retested.
3- Should the channel break, we shall have an extremely full of opportunity breakthrough to go short for long term.
4- Monthly may complete as a shooting star, if it happens so, it will be a further indication that we may be looking at a reversal:
All the best for your trades, Happy trading :-)
Do not make rash decisions, only enter with confirmation through a breakout!
Trade active:
The Up channel is broken on H4, although it is better to wait for a daily closing below it but I think we can enter with a smaller lot here. Cheers! and best of luck
