Gold rejects at key resistance: Huge S&R zone is waiting!
Hello dear precious metal traders, hope you're doing well guys! ;)
In our last analysis -which was on the Monthly chart -I had written the following:
<If we close this week under $1,400 psychological, we could retest the upper range of the breakout zone again around $1,370-80. But now it will be a hell lot of easier, since it will be now an S&R zone: Which was huge resistance before, should now become our bottom.
After the $1,400 psychological is cleared, If we look at the bigger timeframe on the monthly, we can only see one major resistance left: The monthly lower Highs at $1,433. After this resistance is cleared, there is nothing to hold Gold back from reaching the 2013 bottom breakout of $1,550. >
As you can see guys, we perfectly reached the $1,433 mark, before getting too extended on the Daily chart, and seeing a consolidation/reversal in this case, with a very nice Shooting Star/Doji candle:
What now?
My last analysis still applies. We didn't close the previous Weekly candle above $1,400, which would've been crucial for the bulls to hold the range. But nonetheless, should we now keep correcting lower, we will have the huge S&R zone of 1,350-80 as support, this time coming on the way down, instead of knocking on the door from the way up since the break in 2013. => This should give the bulls huge reason to buy from that support zone.
In that regard it's really funny, because the Daily & Weekly chart are almost identical right now, and it is very normal for the bulls to cool down on their move/buy the dip.
Of course, the bulls could reverse the trend much quicker, which we would have to watch for on the smaller timeframes like the 4H, without the need to test the $1,350-80 range at all: in that case, the weekly Doji candle, which hasn't closed yet (4 days to go still) would be obviously invalidated.
Can you read the chart yourself, or are you still dependent on other people like myself to read it for you? Are you an 'illiterate in charting'? Do you have a trading plan with sheets, or are you trading from your head? Are you already making gains over the long-term, like a casino, or are you losing over the long-term, because you have no idea what your strategy is? => Those are all important questions, where are I can help you with. I hope you had some value and wish you a good trading! :)
Edgy is providing online mentorship & trading metrics only. We are not a financial advisor, nor do we hold any formal qualifications in this area. You're trading at your own risk. No matter what you do, please set your stop loss. Please be aware, that you can lose all your money on the online exchanges.
In our last analysis -which was on the Monthly chart -I had written the following:
<If we close this week under $1,400 psychological, we could retest the upper range of the breakout zone again around $1,370-80. But now it will be a hell lot of easier, since it will be now an S&R zone: Which was huge resistance before, should now become our bottom.
After the $1,400 psychological is cleared, If we look at the bigger timeframe on the monthly, we can only see one major resistance left: The monthly lower Highs at $1,433. After this resistance is cleared, there is nothing to hold Gold back from reaching the 2013 bottom breakout of $1,550. >
As you can see guys, we perfectly reached the $1,433 mark, before getting too extended on the Daily chart, and seeing a consolidation/reversal in this case, with a very nice Shooting Star/Doji candle:
What now?
My last analysis still applies. We didn't close the previous Weekly candle above $1,400, which would've been crucial for the bulls to hold the range. But nonetheless, should we now keep correcting lower, we will have the huge S&R zone of 1,350-80 as support, this time coming on the way down, instead of knocking on the door from the way up since the break in 2013. => This should give the bulls huge reason to buy from that support zone.
In that regard it's really funny, because the Daily & Weekly chart are almost identical right now, and it is very normal for the bulls to cool down on their move/buy the dip.
Of course, the bulls could reverse the trend much quicker, which we would have to watch for on the smaller timeframes like the 4H, without the need to test the $1,350-80 range at all: in that case, the weekly Doji candle, which hasn't closed yet (4 days to go still) would be obviously invalidated.
Can you read the chart yourself, or are you still dependent on other people like myself to read it for you? Are you an 'illiterate in charting'? Do you have a trading plan with sheets, or are you trading from your head? Are you already making gains over the long-term, like a casino, or are you losing over the long-term, because you have no idea what your strategy is? => Those are all important questions, where are I can help you with. I hope you had some value and wish you a good trading! :)
Edgy is providing online mentorship & trading metrics only. We are not a financial advisor, nor do we hold any formal qualifications in this area. You're trading at your own risk. No matter what you do, please set your stop loss. Please be aware, that you can lose all your money on the online exchanges.
