Gold has reached a resistance level of around 1322, which is also 0.618 Fib level on the daily time frame. A bearish shooting star reversal pattern has been created on the 4hr chart suggesting a reversal in direction of price.
Although price action may seem to be in an uptrend, I believe it to be in a downtrend as a lower low was created at 1283 and the previous low at 1303. I have a channel in place to give myself a probable direction of price and used the bar pattern to determine where may price may continue to move further towards. I am expecting price to create a new low around 1264 - 1257 range.
Let me know your thoughts
Thanks
Although price action may seem to be in an uptrend, I believe it to be in a downtrend as a lower low was created at 1283 and the previous low at 1303. I have a channel in place to give myself a probable direction of price and used the bar pattern to determine where may price may continue to move further towards. I am expecting price to create a new low around 1264 - 1257 range.
Let me know your thoughts
Thanks
Comment:
It appears price has broken the ascending channel and now we are moving nicely to the downside, expecting a small pullback soon