Yellow zones- critical zones based on the monthly time frame
Red zones- critical zones based on the daily time frame
Blue zones – critical zones based on the 4h time frame
Orange zones – critical zones based on the 1h time frame
The last COT Gold report came out bullish and there are no changes that could indicate a short momentum in the contract sizes.
After breaking the 1800.000 level, price managed to place new highs near the 1818.000 area. Afterwards a small correction took place. From the 8. July till 9. July the formation of a “M” can be seen, but it could not break the monthly critical.
Now the price is in a “W” structure, which already received support from its neckline. If we get a close above the previous lower high, we can prepare for an entry in a new channel that can lead towards the next monthly critical area.
There is a high chance that price drops again towards the 4H bottom trend line near the 1790.00 zone in order to stop as many buyers as possible. This will on the other hand give the retailers a reason to sell, thinking that the time for a bigger correction has come. The 1790 area also aligns perfectly with the 0.5 Fibonacci retracement and with the 200 EMA. If this happens the bottom trend line will play a crucial role as support and the price will once again receive the needed momentum towards the 1850.000 area.
If you enjoyed my analysis, please leave a like, comment or follow. Thank you!
Happy trading!
Red zones- critical zones based on the daily time frame
Blue zones – critical zones based on the 4h time frame
Orange zones – critical zones based on the 1h time frame
The last COT Gold report came out bullish and there are no changes that could indicate a short momentum in the contract sizes.
After breaking the 1800.000 level, price managed to place new highs near the 1818.000 area. Afterwards a small correction took place. From the 8. July till 9. July the formation of a “M” can be seen, but it could not break the monthly critical.
Now the price is in a “W” structure, which already received support from its neckline. If we get a close above the previous lower high, we can prepare for an entry in a new channel that can lead towards the next monthly critical area.
There is a high chance that price drops again towards the 4H bottom trend line near the 1790.00 zone in order to stop as many buyers as possible. This will on the other hand give the retailers a reason to sell, thinking that the time for a bigger correction has come. The 1790 area also aligns perfectly with the 0.5 Fibonacci retracement and with the 200 EMA. If this happens the bottom trend line will play a crucial role as support and the price will once again receive the needed momentum towards the 1850.000 area.
If you enjoyed my analysis, please leave a like, comment or follow. Thank you!
Happy trading!