On the Weekly chart, Gold has been range bound since 2020 bouncing from the mid 1600s to the low 2000s. It is now back at the highs of this range it is accompanied by a bearish chart patten (ascending channel).
On the daily, Gold began rejecting from this major supply/resistance zone on April 13th and 14th, in confluence with rejecting the resistance trend line of the ascending channel.
On the 4 Hour timeframe, you can see that structure was broken changing the directional character of the current trend to short term down trend and possible long term. Since making this move Gold has consistently rejected 2009 - $2015. It is now reject this same area in addition to forming a rising wedge, another bearish setup.
IDEA ONE: I am anticipating, with confirmation, a break and continuation to the downside for 2 target points at 1969 and 1943 for the first trade idea.
IDEA TWO: I am watching for a bounce between 1933 - 1943 at the major demand /support area in confluence with the larger uptrend line of the ascending channel for a move back up towards the resistance areas at 2009 - 2015 and 2040 - 2048 to create a lower high on the higher timeframes.
IDEA THREE: If GOLD somehow breaks the major demand/support AND long time uptrend support line of the ascending channel, WHICH I DON’T SEE HAPPENING LOL, I’ll wait for some consolidation back up to the major demand/support turned resistance for a reject and move to the downside. NOTE: There is a 4 hour imbalance between 1845 and 1862 before arriving at the next major demand/support at 1801 and 1810.
PS: Don't just enter trades blindly, stack your confluence factors for added confirmation. (MACD, RSI, STOCH, ATR, PIVOTS, EMAs, ETC
On the daily, Gold began rejecting from this major supply/resistance zone on April 13th and 14th, in confluence with rejecting the resistance trend line of the ascending channel.
On the 4 Hour timeframe, you can see that structure was broken changing the directional character of the current trend to short term down trend and possible long term. Since making this move Gold has consistently rejected 2009 - $2015. It is now reject this same area in addition to forming a rising wedge, another bearish setup.
IDEA ONE: I am anticipating, with confirmation, a break and continuation to the downside for 2 target points at 1969 and 1943 for the first trade idea.
IDEA TWO: I am watching for a bounce between 1933 - 1943 at the major demand /support area in confluence with the larger uptrend line of the ascending channel for a move back up towards the resistance areas at 2009 - 2015 and 2040 - 2048 to create a lower high on the higher timeframes.
IDEA THREE: If GOLD somehow breaks the major demand/support AND long time uptrend support line of the ascending channel, WHICH I DON’T SEE HAPPENING LOL, I’ll wait for some consolidation back up to the major demand/support turned resistance for a reject and move to the downside. NOTE: There is a 4 hour imbalance between 1845 and 1862 before arriving at the next major demand/support at 1801 and 1810.
PS: Don't just enter trades blindly, stack your confluence factors for added confirmation. (MACD, RSI, STOCH, ATR, PIVOTS, EMAs, ETC
Dennis Butler Jr.