This chart shows that recent swing high is very weak. If you look at the previous swing its easy to note that price smashed right through the 161.8% and profit taking occurred around 200%. From here prices rallied higher up to the 361.8% extensions.
Looking at the recent swing, it would be safe to assume the heavy limit orders to be sitting around 161.8%. The rejection from 127.2% was severe and caused a lot of trouble for the average bull in this market.
Considering how gold has seemed to correct for about 50 days previously, the rally up should continue somewhere around March.
NOW if we start to get a close above 127% or even 161.8%, consider this analysis invalid. It is expected to go further and can become very extended if we happen to close above these levels.
If not a healthy pullback should be expected!
Thank you for reading!
Happy trading and may God bless
Looking at the recent swing, it would be safe to assume the heavy limit orders to be sitting around 161.8%. The rejection from 127.2% was severe and caused a lot of trouble for the average bull in this market.
Considering how gold has seemed to correct for about 50 days previously, the rally up should continue somewhere around March.
NOW if we start to get a close above 127% or even 161.8%, consider this analysis invalid. It is expected to go further and can become very extended if we happen to close above these levels.
If not a healthy pullback should be expected!
Thank you for reading!
Happy trading and may God bless
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