gold just reached a strong falling trend line. for now we see a positive bearish reaction from that and this touch may initiate a strong bearish swing move.
I will pay attention to a support line of a bullish flag pattern. in case of a daily candle close below its support, bearish continuation will be highly probable.
goal for sellers will be 1860 (current daily low)
in case of a bullish continuation above the falling trend line, setup will be invalid.
@VasilyPonomarev, I think you're right - bears are in control for the time being, and will be applying a lot of pressure on the 1850-60 area. If this area doesn't hold then I think we may see a break down to 1800. That 1860 area will be key this week I think.
@VasilyPonomarev, thanks for the good anaylisis as usual. However, given the big relatively high momentum bearish candle on the 6th of October, which failed to break the channel and the follow-up candles having been upward I do not think it will break the channel with this weaker momentum bearish one on the 13th which also failed to break the channel. The fundamental news on the other hand are not so supportive of a strong Dollar.
That's my small man student thought. Please correct me where I am failing to notice something. I trust your opinion better than I trust mine.
VasilyTrader
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@Petros75, Thank you for sharing your thoughts brother
That is why it is so hard to trade financial markets
While one trader has a reasonable bearish view
Another has a reasonable bullish
And both are correct
Manjinder_Singh_Sasan
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@VasilyPonomarev, bro look at the Head & Shoulder Scenario. The right shoulder have touched the left shoulder’s close/open and hence then given a kicker with the engulfing candle. With this the institutional bears are all ready to take positions on Mondays London Session.