Gold has been stuck in this falling channel (Fibonacci channel on my chart) since topping out on August 6. Pay attention to 0.618 Fibonacci level which is coloured in red - I'm talking about the channel, not horizontal Fib retracement! This red shaded Fib channel acted many many times as resistance, then we saw a fakeout, then resistance again and now it looks like this exact Fib channel is acting as support. I'm very confident that Gold is forming a big bull flag and it will break upward very soon.
My target is 2143
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My target is 2143
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Comment:
4h MA50 is very important, acting as resistance and support many times recently. There was bounce from it today which makes me confident that Gold is bullish and this idea is developing nicely.
Comment:
Next challenge is to break 100 moving average on Daily chart (black line on chart above). If this succeeds, $1956 is next immediate target.
Comment:
It broke the Daily MA100 and touched 1956 as I said above, but there it got rejected and crashed all the way back to red-shaded Fib channel. It's very important that it holds. Let's see and wait.
Comment:
We see wicks bellow red-shaded support but so far it's holding. 4h close bellow 1825 invalidates this idea and I would close position with small loss.