GOLD, Breakout The Bull-Flag-Formation, Confirming The Trend!

Hello, Traders Investors And Community, welcome to this update-analysis about GOLD, there are some new meaningful signs in the current formation and price-action which I detected, the last time I mentioned GOLD I recognized an important bull-flag-formation within the structure if you did not see this analysis I recommend that you go to my account and have a look on it. The last hours we saw GOLD breaking out the current bull-flag with good volume and volatility, that is overall all an excellent sign for more continuation to the upside which I mention here with the targets integrated. We are looking at the locally 4-hour time-frame.

As you can see in my chart GOLD has still this strong rising-resistance-line above which serves as a highly important resistance in the structure. First of all, it is a good sign that we broke out of the bull-flag which you see in my chart, the next time it is within the high likelihood schedule that the bull-flag will be confirmed with a pull-back of the higher boundary of the bull-flag before moving higher after the confirmation. If the confirmation happens the next time this will be a good place to open a conservative long-position with a stop-loss below 1710 level, it is wiser to wait on the confirmation here than to rush in the trade as there is still some resistance above.

After the confirmation happened we can expect GOLD to move higher to the first short-term-target at 1775 which you see marked in my chart in grey after this target is reached we can expect that gold will have a smaller correction to correct its upward-move before moving higher and finally reach the overall full-bull-flag-target which you see in my chart at the 1790 level. This target also matches coherently with the rising blue resistance line and building a bearish confluence zone there. On the longer time-frame, I observed that GOLD is trading in a possible big inverted head and shoulder formation in which we are forming the right shoulder currently but this has to be confirmed properly and when it does we have a good sign to move higher in price action.

On the fundamental side, we have the overall stock-market which is declining and this is almost always a bullish sign for GOLD to move higher as the history showed already several times. When the corona-restriction do not increase in the country's again I do not see much of resistance for the growth of gold in the middle-term-basis, remember that when these restrictions increase or we get a second wave of corona-fears on the global-economy it can affect GOLD also as it affected the whole market-landscape, in this case, we need to be prepared and consider the changed situation again, therefore we need to do not get overly speculative and see the situation as it is because that happens fewer and fewer in today's markets.

Thanks for watching, support for more market insight, and all the best.
There are many roads to prosperity, but one must be taken.
In this manner: FAREWELL

Information provided is only educational and should not be used to take action in the markets.

Comment:

ANALYSIS UPDATE: GOLD continued to bounce bullishly in the support zone.

GOLD after bouncing in the support zone reached the final targets.