As attached
Trade closed: target reached:
It goes down as expected.. We expect a correction at current levels and still continue down again.. To be updated after closing this week candle..
All signals in gold chart indicates to a high probability to downtrend.. On monthly chart the price almost reached to a very strong resistance which starts from 1360 to 1370$.. This resistance is from years not broken yet.. On Weekly chart it gives a reversal candle with a big wick indicates a strong bearish power. On Daily chart, the price made an evening star price action. If you notice on the same chart when the price was revered from bearish to bullish it formed a morning star.. So all indications technically gave us a bearish probability. Sometimes the price tries to confirm its direction, how? It makes a known pattern, usually it can be a double top... Because of that I expected the price has a probability to go up breaking the last daily top and reverse back.. It’s not necessary to reach 1370$, it can only break the last top and go down. Also it’s not necessary to go up anymore it could go down directly.
That was a first scenario, the other one is the price starts from next week to make a correction. It can be a big correction through a pattern then price could go up or it could go down. But logically trading a small wave (uptrend) will not make sense while you can trade the big wave (downtrend). So, we have to wait until the correction finish and the direction become clear.
If the price breaks the strong resistance (breaks 1370$), it means it will go strongly to high levels (it can reach 1500$), but this is a weak probability.
If the price makes a big correction which continues for weeks, it means the trend-after will become so strong either it becomes uptrend or downtrend..
Gold is a metal which decreases the liquidity of investors. So, they invest in Gold to gain a lot of profits. They buy from low prices in order to sell on high ones.
Gold is just an investment for them. The prices now are not good for buying because they are almost high to invest. Big investors are not looking for 20$ or 30$ in an ounce but they are looking for about 100$ and more in an ounce.. So they usually buy Gold under 1230$ and start to sell after 1330$. Some of them buy under 1200$ and sell after 1300$. This is the investment..
Another important factor is the USD power. If the USA market is optimistic the Gold price will go down more and more. And vice versa. At the end of the day economy is responsible for the market movements and charts are the guidelines for us to go with those movements.. And that was an analysis and expectation, and economy is the reality.
Thanks