We Predicted Gold To Reach 1810.5 – It Did! Now What?
Well, it happened. Gold bounced off previous support around 1783 and rallied up to the 1810.5 levels.
We mentioned that this could be a possible long play a few days ago. The question is, now that it happened. What’s next?
We are looking at the 4-Hour chart.
We do have a trend line supporting price up to the 1810.5 level, and as we can see, it did treat that level as new resistance now.
So, could we be expecting a move back down to support? Or is this rally strong enough to break through the 1810.5 level and carry on pushing up?
Let’s break it down and see if there’s anything potentially setting up.
We see that that trend line supported gold up to resistance at 1810.5, and the price did bounce off it. Currently, the trend line is supporting price. Could we see a squeeze to the upside?
We have partial divergence on the two most recent peaks. This is shown on the MACD Histogram.
We also have volume sloping downwards, indicating a move soon.
I have marked up a liquidity zone in yellow on the chart. Suppose we have a clear, strong impulse moving below and closing below the liquidity zone. In that case, we could look for a short setup using the liquidity zone as a Double Top neck zone and look for an entry targeting the 1783 support level.
If we break 1810.5 clearly and impulsively move up, I would hesitate to long right away as fake-outs are always possible.
So, let’s keep an eye on this, and should any 4-hour moves present themselves,
I will most definitely post about it, and hopefully, we will be able to catch a nice move.
Currently, it feels like we’re surfers in the ocean just waiting patiently, not rushing, to catch that perfect wave.
Trading isn’t perfect, and neither is surfing.
So whichever wave we do end up taking, we have to make sure that we are riding it or attempting to ride it for the right reasons; otherwise, we know what happens – wipeout!
Trade safe traders
We mentioned that this could be a possible long play a few days ago. The question is, now that it happened. What’s next?
We are looking at the 4-Hour chart.
We do have a trend line supporting price up to the 1810.5 level, and as we can see, it did treat that level as new resistance now.
So, could we be expecting a move back down to support? Or is this rally strong enough to break through the 1810.5 level and carry on pushing up?
Let’s break it down and see if there’s anything potentially setting up.
We see that that trend line supported gold up to resistance at 1810.5, and the price did bounce off it. Currently, the trend line is supporting price. Could we see a squeeze to the upside?
We have partial divergence on the two most recent peaks. This is shown on the MACD Histogram.
We also have volume sloping downwards, indicating a move soon.
I have marked up a liquidity zone in yellow on the chart. Suppose we have a clear, strong impulse moving below and closing below the liquidity zone. In that case, we could look for a short setup using the liquidity zone as a Double Top neck zone and look for an entry targeting the 1783 support level.
If we break 1810.5 clearly and impulsively move up, I would hesitate to long right away as fake-outs are always possible.
So, let’s keep an eye on this, and should any 4-hour moves present themselves,
I will most definitely post about it, and hopefully, we will be able to catch a nice move.
Currently, it feels like we’re surfers in the ocean just waiting patiently, not rushing, to catch that perfect wave.
Trading isn’t perfect, and neither is surfing.
So whichever wave we do end up taking, we have to make sure that we are riding it or attempting to ride it for the right reasons; otherwise, we know what happens – wipeout!
Trade safe traders