Gold - NEW Market Overview

The previous post about the Gold market you can find in the related ideas. In that post, I talked about bearish divergence and used the trading strategy based on MAs and additional indicators. This time I want to provide analysis based on Ichimoku indicator.

The market started performing in the format of the double bearish divergence. The market broke the local uptrend line and dropped to the support zone formed by 1300.00 and 1290.00 levels. Lower at 1280.00 level, we have Senkou A line. It means that the market will have the 1st reversal zone between 1300.00 and 1280.00 levels. We have to watch for the price action in this zone and wait for possible reversal signals. These signals will be used for opening long positions in the direction of the main trend.

If the price drops below Senkou A, the next line, which will act as the support, will be Senkou B. The reversals from this line also will be used for buying.

The 3d support zone will be at the main uptrend line. If the price reached this line, we should wait for the reversal as this line is very important for keeping the bullish structure. But at this time, the price will be below the cloud, and such position will confirm the bearish market. Buying from the uptrend zone will be rather risky as the market will confirm the trend reversal based on Ichimoku indicator.

The trend reversal will be confirmed if the price can break the main uptrend line. If so, we will have to wait for new sell opportunity in the confirmed bearish market.



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