- setup is bearish/neutral. Price turned down from Kumo resistance, and the trend is still . However Kumo overshades Price and few weeks ago a weak Tenkan/Kijun cross happened. Chikou Span has no open space at all. Kijun Sen at 1220 should act as stronger support/ resistance now. New acceleration would take place only below 1200.
- weekly HA candle is red, haDelta and SMA3 back below zero line.
The most optimal situation would be to catch a HA signal a bit lower in the 1200-1220 zone. But markets are never that easy to catch. So we rather have to focus on daily signals.
One thing is sure, for a strategic reversal Gold should break and close above 1300.
We have some mixed signals here as well, and I think it is really time to watch for a possible swing.
- On the daily time frame Gold has been developing a . Price action is in wave four pull back, reaching a very important at 1220-1225. We have Senkou B, horizontal support and a bit lower the support. In terms of it should be considered a Kumo retest (back to breakout level) where we should focus on possible signals again.
- due to the swing down setup has turned a bit neutral from , with Kumo overshade, Chikou Span down to Price candles too, and we almost have a weak Tenkan/Kijun cross. However Senkou A (future Kumo top) still points up.
- Heiken Ashi candle is still red with no upper wick, but the body is smaller that's why haDelta crossed above its SMA3. pressure may slow down a bit.
We must watch HA signals carefuly at this support. A like candle or a green switch would mean a possible reversal up again to start 5th wave within the minor trend.
I know you guys hate bears, but look at the first chart, it hits the upper channel goes down to lower channel, and this pattern reapeats it self, stochastick on weekly also confirm this pattern,
in my oppinion if you buy here you are going aginst a realy strong pattern, its been consistent for 3 years now.
You are right, that's why I wrote "confusing signals". On the weekly it is bearish. On the daily it is bullish still with a pull back now within the trend. That's why we use stops. If a long trade has chance, this is the zone to buy. If bears take back control, then the worst is we lose some money according to our risk-management. Risk vs Reward is the key.
Whats also interesting is the dollar, i don't know if you looked up the chart of the dollar index, but its has huge divergences, and the rally has been extreme, since gold trade vs the dollar, any sharp movement in the dollar will differently have positive impact on gold, what do you think about the dollar index? that being said i am long gold stocks since i expect another short term bounce in gold xDDD.
Same is valid for Chikou Span. When Chikou has an open space ahead, the momentum of the trend is stronger. When Chikou loses open space or hits Price candles, the momentum fades.