Analysis:
Price has been in this upwards trend for a while now but in the last couple of months we've seen that change and price has started to reverse and head to the downside. In recent times price was able to break past this long term upwards trendline that we've seen be respected multiple times, which signals to us that the bears are taking control of the market. In this last week we've seen price pullback and start to look bullish on the lower timeframes, however on the higher timeframes we are still bearish and this move is just a healthy pullback before we see a continuation to the downside. We're currently coming to retest this previous upwards trendline for resistance and we expect that this will now hold as support often turns to resistance once broken. For more added confluence, taking the fib retracement tool from the most recent swing high to the swing low we see that the 38.2% fib retracement level is lining up with this upwards trendline and our area of resistance which we'll talk more about in a minute. Whilst the 38.2% fib retracement level is the weakest fib retracement level we still often see it hold and with this area lining up with other confluences, we have a strong feeling that this level will hold and that we will see the bears push price down further from this level. At this area we also have an area of resistance. We've seen this level get tested multiple times in the past for support and resistance so we expect that it will be respected as resistance again and we'll see price make a move to the downside. With the USD as well being the strongest major currency we see gold making a continuation move to the downside. With all of the technicals lining up together and the USD strength we are bearish on gold until stated otherwise and with the USD news that is coming out later today we could see the catalyst we need for the USD to gain more strength and incise the bulls to push the USD higher, which in turn would drag gold down.
Please feel free to leave any comments you have and like this idea if you agree with us. Any feedback or comments will be read and responded to. We any comments at all so thank you!
Stay Safe - The JPI Team
Disclaimer:
This does not constitute as financial advise. We are not responsible for any monetary loss that you endure. Trading is hard to be profitable with and we take losses just like everyone else does too. Our ideas won't always be correct which is why we urge you to always do your own analysis first before entering into the market but please feel free to use our analysis to assist you with yours.
Price has been in this upwards trend for a while now but in the last couple of months we've seen that change and price has started to reverse and head to the downside. In recent times price was able to break past this long term upwards trendline that we've seen be respected multiple times, which signals to us that the bears are taking control of the market. In this last week we've seen price pullback and start to look bullish on the lower timeframes, however on the higher timeframes we are still bearish and this move is just a healthy pullback before we see a continuation to the downside. We're currently coming to retest this previous upwards trendline for resistance and we expect that this will now hold as support often turns to resistance once broken. For more added confluence, taking the fib retracement tool from the most recent swing high to the swing low we see that the 38.2% fib retracement level is lining up with this upwards trendline and our area of resistance which we'll talk more about in a minute. Whilst the 38.2% fib retracement level is the weakest fib retracement level we still often see it hold and with this area lining up with other confluences, we have a strong feeling that this level will hold and that we will see the bears push price down further from this level. At this area we also have an area of resistance. We've seen this level get tested multiple times in the past for support and resistance so we expect that it will be respected as resistance again and we'll see price make a move to the downside. With the USD as well being the strongest major currency we see gold making a continuation move to the downside. With all of the technicals lining up together and the USD strength we are bearish on gold until stated otherwise and with the USD news that is coming out later today we could see the catalyst we need for the USD to gain more strength and incise the bulls to push the USD higher, which in turn would drag gold down.
Please feel free to leave any comments you have and like this idea if you agree with us. Any feedback or comments will be read and responded to. We any comments at all so thank you!
Stay Safe - The JPI Team
Disclaimer:
This does not constitute as financial advise. We are not responsible for any monetary loss that you endure. Trading is hard to be profitable with and we take losses just like everyone else does too. Our ideas won't always be correct which is why we urge you to always do your own analysis first before entering into the market but please feel free to use our analysis to assist you with yours.
Trade active:
Our entry criteria has been met and our order has been filled. We are now short on gold, speculating that we are still in a downwards trend and that we will see price continue bearish.
