Gold consolidates as it ponders move towards $2000
Well, gold did make it to $1980 - just not the way we'd hoped. Still, a bullish structure has formed on the 1-hour chart which has regained our interest.
A bullish outside day formed yesterday and its lower wick shows strong demand around 1950. Prices are now consolidating within a potential bullish continuation pattern on the 1-hour chart, having pulled back from the weekly R1 pivot yesterday. The 1970 - 1972 region has acted as both support and resistance since Friday, and our bias remains bullish above that level. However, tighter risk management could be used with the low of the bullish engulfing candle above 1975.
We're now looking for momentum to turn higher and reach for the 2,000 resistance zone. If prices produce a deeper retracement initially, we'll look for bullish setups above 1975.
A bullish outside day formed yesterday and its lower wick shows strong demand around 1950. Prices are now consolidating within a potential bullish continuation pattern on the 1-hour chart, having pulled back from the weekly R1 pivot yesterday. The 1970 - 1972 region has acted as both support and resistance since Friday, and our bias remains bullish above that level. However, tighter risk management could be used with the low of the bullish engulfing candle above 1975.
We're now looking for momentum to turn higher and reach for the 2,000 resistance zone. If prices produce a deeper retracement initially, we'll look for bullish setups above 1975.
Trade closed: target reached:
We saw a slightly deeper pullback ahead of its break to our
2000
target (and beyond). Prices have pulled back but the intraday price action suggests it may be corrective, so one to watch for further bullish opportunities.
2000
target (and beyond). Prices have pulled back but the intraday price action suggests it may be corrective, so one to watch for further bullish opportunities.
