In my previous post about Gold I initiated a counter trend long, with 1275 target. After meeting this target (actually it moved even a bit higher to 1283) it looked wise to take profit... looked wise for two days. Then I got suspicious, as right after printing a hammer, it printed a green candle, and that close broke the short term downtrend line. Next move was a big boom, bears capitulated and price surgedmuch above Kijun Sen, and by now enterred the Kumo Cloud.
When something is trading in the Kumo, should be considered short term as neutral. The Kumo is relatively thick, meanwhile Slow Stoch got into overbought territory. For me this indicates Gold may try to reach and breach the Kumo top at 1330, but first attempt will likely fail. (unless of course some "Swan" takes it onto its wings and it blows up). Most likely it will consolidate in the Kumo, may look below it to retest Kijun Sen as well ard 1285-1290.
What else do we see here? Future Kumo is about to give a Senkou bullish cross, so support lvls may come up a bit. Tenkan/Kijun also weak bullish (bullish cross happened below the Cloud), and Chikou Span also trades above Price, but not above the Cloud. Chikou Span also shows clearly that a possible bullish support is getting more firm at 1290. (1290 is 4 Hrs Kijun Sen level too). The first dip to this level will very likely be bought. Next support is 1270-1275.
If we put it all together, I don't think anyone should stick to a strong strategic bearish bias any more. We will see how it develops later.
When something is trading in the Kumo, should be considered short term as neutral. The Kumo is relatively thick, meanwhile Slow Stoch got into overbought territory. For me this indicates Gold may try to reach and breach the Kumo top at 1330, but first attempt will likely fail. (unless of course some "Swan" takes it onto its wings and it blows up). Most likely it will consolidate in the Kumo, may look below it to retest Kijun Sen as well ard 1285-1290.
What else do we see here? Future Kumo is about to give a Senkou bullish cross, so support lvls may come up a bit. Tenkan/Kijun also weak bullish (bullish cross happened below the Cloud), and Chikou Span also trades above Price, but not above the Cloud. Chikou Span also shows clearly that a possible bullish support is getting more firm at 1290. (1290 is 4 Hrs Kijun Sen level too). The first dip to this level will very likely be bought. Next support is 1270-1275.
If we put it all together, I don't think anyone should stick to a strong strategic bearish bias any more. We will see how it develops later.