Long with potential of a Reversal (Minor or Major)
Hello Fellow Traders :) Happy start to a new week.
The chart drawn above shows that we are still in an uptrend with the thickest, blue Major Uptrend Line in tact.
If we look at the thinner, blue uptrend line it shows that we have created a new uptrend line with some bullish candles showing some strength from the bulls.
If we look at recent market behaviour, the bears did step in with a series of downward pressure at key resistance level on a higher time frame. This action by the bears broke the red uptrend line. This action is something to take note of as there's a chance of AT LEAST 50% that the bears will ATTEMPT to try to reverse the market (either a Minor Reversal which leads to a Trading Range OR a Major Reversal which breaks through the thick, blue MAJOR Uptrend line.
If this occurs, the probability of this uptrending market turning into a correction increases. This also coincides with the fact that we've had 3 pushes up with gold and POSSIBLY a time for a correction and profit taking. We will see this week how things pan out between the bulls and the bears.
For now a continued long move until we reach these potential reversal zones above (highlighed by the boxes), in which we will see how strongly the bears try to overcome the bulls, and if we see follow through shorting, followed by the bulls exiting their long positions, with some even switching over to shorts as we continue down.
Keep in mind that we are still in an uptrending market, in which we also created a new uptrending line, in conjunction with some good looking bullish bars. The probability of going with the trend is always in our favour. To reverse this trend we need to see some strong signals/signs for a reversal of the current price action and momentum which is going UP at the moment.
The chart drawn above shows that we are still in an uptrend with the thickest, blue Major Uptrend Line in tact.
If we look at the thinner, blue uptrend line it shows that we have created a new uptrend line with some bullish candles showing some strength from the bulls.
If we look at recent market behaviour, the bears did step in with a series of downward pressure at key resistance level on a higher time frame. This action by the bears broke the red uptrend line. This action is something to take note of as there's a chance of AT LEAST 50% that the bears will ATTEMPT to try to reverse the market (either a Minor Reversal which leads to a Trading Range OR a Major Reversal which breaks through the thick, blue MAJOR Uptrend line.
If this occurs, the probability of this uptrending market turning into a correction increases. This also coincides with the fact that we've had 3 pushes up with gold and POSSIBLY a time for a correction and profit taking. We will see this week how things pan out between the bulls and the bears.
For now a continued long move until we reach these potential reversal zones above (highlighed by the boxes), in which we will see how strongly the bears try to overcome the bulls, and if we see follow through shorting, followed by the bulls exiting their long positions, with some even switching over to shorts as we continue down.
Keep in mind that we are still in an uptrending market, in which we also created a new uptrending line, in conjunction with some good looking bullish bars. The probability of going with the trend is always in our favour. To reverse this trend we need to see some strong signals/signs for a reversal of the current price action and momentum which is going UP at the moment.
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Trading Range or correction appears to be resuming/in place at the moment.
Until we see a potential break below for my next plans of action.
Looking for an eventual upside break to create a new, more recent higher high.
Until we see a potential break below for my next plans of action.
Looking for an eventual upside break to create a new, more recent higher high.
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Could see a continuation up from here, or we may require one more test below and rejection. However i do like how the bulls have taken over here.
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Bull control - 5 minute:
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We just closed the gap caused by the market open.
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The Trading Range continued.
Possible Bull Flag.
Possible Bull Flag.
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Looks like correction has ended or is ending. Looking for continued moves long.
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Should turn into a trading range or bull flag/correction in this box.