Previously I have posted a long term analysis of GOLD with a bullish bias. I still believe that we are in a bullish trend, however, a correction is necessary to keep a trend healthy. Looking at gold chart at the moment, it looks like that it has started the retracement move.
I made a sketch of I believe is going to happen during this retracement. Basically, a falling wedge would be the most suitable pattern to trade in as it is a continuation pattern (can be a reversal pattern btw) where price remains fairly stable within the pattern.
I expect this to take us back to the demand zone / accumulation, around 1740, where it coincides to happen around the weekly channel support. As long as price doesn’t breach the channel support, then expect price to move in a sideways range for an extended period (most likely in ascending triangle pattern). This by itself is an indication that GOLD is being accumulated by investors and typically by institutional buyers and as a result will be moving up impulsively once accumulation has been done.
I made a sketch of I believe is going to happen during this retracement. Basically, a falling wedge would be the most suitable pattern to trade in as it is a continuation pattern (can be a reversal pattern btw) where price remains fairly stable within the pattern.
I expect this to take us back to the demand zone / accumulation, around 1740, where it coincides to happen around the weekly channel support. As long as price doesn’t breach the channel support, then expect price to move in a sideways range for an extended period (most likely in ascending triangle pattern). This by itself is an indication that GOLD is being accumulated by investors and typically by institutional buyers and as a result will be moving up impulsively once accumulation has been done.
