From what we have seen previously, there is a strong level of support/resistance around the 1710 area.
Using this information we can see that before the market closed the bearish engulfing candle broke beyond the 1710.
With my theory I'm expecting Gold long term to fall around the 1600 area.
To confirm this short position I will be waiting for a retest of 1710 and will find entries on the pullback. A major confirmation of this long term bearish movement will be if it breaks the 1695 area as there is also strong support/resistance here, from that information I will be expecting to hit 1675/1650 on a short position.
Using this information we can see that before the market closed the bearish engulfing candle broke beyond the 1710.
With my theory I'm expecting Gold long term to fall around the 1600 area.
To confirm this short position I will be waiting for a retest of 1710 and will find entries on the pullback. A major confirmation of this long term bearish movement will be if it breaks the 1695 area as there is also strong support/resistance here, from that information I will be expecting to hit 1675/1650 on a short position.
Comment:
Weekly Update: Gold retested 1710 as soon as the market opened and then was bearish but did not break the 1695 area for confirmation. This led to a reversal and then began a bullish trend going onto break the 1710 area and also create a new 2020 Yearly High.