Exhausting bulls may present corrective opportunity
Hey there folks! Let us analyze today what to expect from gold in the upcoming few days from a purely technical perspective. Here is the data I was able to extract from the chart as of now:
1- The price is seen moving in a broadening uptrend channel since the month of November, 2022
2- Currently we are stuck inside a rising wedge consolidation/bullish exhaustion pattern on a local level. I know the wedge is not very clear in the chart so here is a zoomed in image:
3- Should wedge break low, we may expect the price to retrace back to the lower border of the up channel i.e. the green trendline. This occurrence may present two side-by-side opportunities that have equal chances of happening.
i- The price breaks lower than the up channel overall and completely reverse the direction of the trend to the major bearish picture
ii- The price bounces off of it to target the upper border of the up channel or nearby that then price range, the most important and foremost target is the ATH i.e. 2071.xx if that is to happen
4- H4 RSI is demonstrating a divergence which may be an indication of a possible down move in the days to come
5- We are still above the cloud indicating the strength of the bulls still intact to the larger extent but that is just one TA
6- If in future, the up channel breaks low expect the price levels in dim orange to be the possible targets for bears
This is all for now, best of luck and happy trading and take extra care of your capital by utilizing appropriate risk management!
1- The price is seen moving in a broadening uptrend channel since the month of November, 2022
2- Currently we are stuck inside a rising wedge consolidation/bullish exhaustion pattern on a local level. I know the wedge is not very clear in the chart so here is a zoomed in image:
i- The price breaks lower than the up channel overall and completely reverse the direction of the trend to the major bearish picture
ii- The price bounces off of it to target the upper border of the up channel or nearby that then price range, the most important and foremost target is the ATH i.e. 2071.xx if that is to happen
4- H4 RSI is demonstrating a divergence which may be an indication of a possible down move in the days to come
5- We are still above the cloud indicating the strength of the bulls still intact to the larger extent but that is just one TA
6- If in future, the up channel breaks low expect the price levels in dim orange to be the possible targets for bears
This is all for now, best of luck and happy trading and take extra care of your capital by utilizing appropriate risk management!
Trade active:
The wedge is broken with yesterdays candle guys, selling 1995. Best of luck :-)
Comment:
Rising three methods on H4, it is a bullish entry signal, I am not saying that It will go full on bullish but it does have the potential to move Gold by
10
-20. Best of luck! :-)
10
-20. Best of luck! :-)