Its been a while since I've looked at the precious metal, Gold. After consolidating between the 1280.00-1290.00 price region, we finally saw a break to the upside. We've steadily been climbing, breaching the weekly key of 1292.25, we then saw slight consolidation around the 78.6% Fibonacci level building up buyers liquidity. This saw price bounce higher, breaking the descending trend line, which i will now anticipate a retest before going long or a bounce off the ascending trend line.
We've seen higher highs and higher lows being created, with a lower high being created around the 1306 price region, enticing sellers to short this pair - which I do see happening in the long run as Gold will fall to the 1250/1260 price region. My favoured entry will be a bounce off the ascending trend line with a 38.2 Fibonacci retracement seen, which can bring price back up to 1325.00 price region. I anticipate a reversal from the 1298.00-1304 price regions however I will be looking for more confirmation with a clear rejection off the trend line and Fibonacci level and a candle stick reversal pattern indicating bullish momentum.
Risk management is key, do not over leverage or use my analysis if it is out of line with your own. Gold tends to move 70 pips one way and then reverse in the desired direction, so have a tight stop loss and watch the fundamentals this week as we have the FOMC Press Conference with economic projections and various other data and statements being released. Gold & the DXY ( US Dollar Index ) correlate, so when the dollar weakens, price goes up for gold.
If you have any other questions, be sure to head over my to instagram
Instagram : keownarcher
We've seen higher highs and higher lows being created, with a lower high being created around the 1306 price region, enticing sellers to short this pair - which I do see happening in the long run as Gold will fall to the 1250/1260 price region. My favoured entry will be a bounce off the ascending trend line with a 38.2 Fibonacci retracement seen, which can bring price back up to 1325.00 price region. I anticipate a reversal from the 1298.00-1304 price regions however I will be looking for more confirmation with a clear rejection off the trend line and Fibonacci level and a candle stick reversal pattern indicating bullish momentum.
Risk management is key, do not over leverage or use my analysis if it is out of line with your own. Gold tends to move 70 pips one way and then reverse in the desired direction, so have a tight stop loss and watch the fundamentals this week as we have the FOMC Press Conference with economic projections and various other data and statements being released. Gold & the DXY ( US Dollar Index ) correlate, so when the dollar weakens, price goes up for gold.
If you have any other questions, be sure to head over my to instagram
Instagram : keownarcher