Price is now at a resistance level... and at this level it started showing reversal signals, by forming a consolidation area in the 4HR followed by a third bounce at the resistance level.
We could see price drop to test previous lows or at least to create a higher low.
Always use risk management
After the big bullish momentum last week we see the bearish entering...
I am waiting to see some bullish momentum, around the TL Support, hitting the 61% level on the fib.
I can then look for Long opportunities bouncing from the TL to previous resistance.
On the overall picture Gold has been moving on an uptrend, although the past weeks it has been forming lower highs.
Price is very close to my minor downtrend support line, this give us the opportunity to sell, until price hits support again.
Or if price manages to create a new daily high, we could see a breakout of the minor downtrend and possible creating new...
Price has now made a Lower Low. Also is very close to my monthly support which has failed to break lower, we can also see on the 4hr chart price forming a bull trap.
We can spot a good buy opportunity once price breaks out of the flag, best to apply the last kiss strategy to this.
-Wait for breakout
-Spot the pullback/retest
-Once price is completed the pullback...
Price had a strong bullish run for the past 2/3 weeks, however this week, the bulls are showing loss of momentum as their testing a resistance level.
Also price is respecting a Trendline Resistance area, we could expect the bears entering to push price back down to the monthly support.