Okay guys, bit of a confusing one but on the daily chart gold has been travelling in a horizontal channel marked out with the blue rectangles, we recently saw a move from bottom to top and as it was it formed an ascending channel, we saw a false breakout of the channel to the upside at the top of the channel however it dropped back into the channel.
As of now price just hit the bottom of the channel and its making its way up, we believe price will test the descending trend line that is marked out in black which lines up with the 0.618 perfectly and make its way down to the -0.27 extension level. THAT MEANS THE ASCENDING CHANNEL WILL BREAK!
IF PRICE HITS STL , PRICE WILL MOST LIKELY FOLLOW THE RED LINE.
As of now price just hit the bottom of the channel and its making its way up, we believe price will test the descending trend line that is marked out in black which lines up with the 0.618 perfectly and make its way down to the -0.27 extension level. THAT MEANS THE ASCENDING CHANNEL WILL BREAK!
IF PRICE HITS STL , PRICE WILL MOST LIKELY FOLLOW THE RED LINE.
Trade active:
PRICE DID NOT MAKE IT ALL THE WAY UP TO THE 0.618 RETRACEMENT, HOWEVER WE DID HAVE SELL ORDER PLACED AT THE 0.500 RETRACEMENT LEVEL, LETS RIDE THE WAVE DOWN ALL THE WAY TO TP