We have witnessed a 3 pin formation on the Daily candlestick. Although the day had not formed, I can tell that there is high probability that today’s candlestick will close bearishly because there is clear rejection of the upside from yesterday’s momentum given that it crossed but closed below the 0.618 Fib level.
Daily bias: Bearish
From the 4 hourly, observe that there had been a 3 pin formation at 11 Feb 6am UTC, but a bearish engulfing candle reversed the momentum after tapping into the levels of 1574 and into the zone i projected. It immediately brought Gold down into the level of 1562.2 which used to be a key resistance zone on 12 Jan 2200. That established itself as a key support zone now.
Gold rallied to the upside after tapping that region back into 1568.4 and sent wicks to that level but could not close above it. Suggesting that Gold is respecting 1568.4 as a temporarily resistance level and may melt to the downside anytime soon.
4H Bias: Bearish
From the 30 minute, I can see Gold not being able to hold itself at the levels of 1568.4 - 1569. and the candlesticks formed showed weakness in price action. This adds as a confluence for a Short entry to be placed here for the maximum risk:reward ratio.
30Min Bias: Bearish
I am expecting Gold to break through the support level of 1562.2 given that the bearish momentum is strong enough. However, we may see that in the London or US session. Asia session had been quiet. My bearish target is 1560.7 at the moment.
Daily bias: Bearish
From the 4 hourly, observe that there had been a 3 pin formation at 11 Feb 6am UTC, but a bearish engulfing candle reversed the momentum after tapping into the levels of 1574 and into the zone i projected. It immediately brought Gold down into the level of 1562.2 which used to be a key resistance zone on 12 Jan 2200. That established itself as a key support zone now.
Gold rallied to the upside after tapping that region back into 1568.4 and sent wicks to that level but could not close above it. Suggesting that Gold is respecting 1568.4 as a temporarily resistance level and may melt to the downside anytime soon.
4H Bias: Bearish
From the 30 minute, I can see Gold not being able to hold itself at the levels of 1568.4 - 1569. and the candlesticks formed showed weakness in price action. This adds as a confluence for a Short entry to be placed here for the maximum risk:reward ratio.
30Min Bias: Bearish
I am expecting Gold to break through the support level of 1562.2 given that the bearish momentum is strong enough. However, we may see that in the London or US session. Asia session had been quiet. My bearish target is 1560.7 at the moment.