Price did not hold 1500/1503 zone/level as previous post, and did not stop at 127% retracement. (Well done to everyone that caught the buy). Which makes alot of sense because this is a 2 month long trend-line. Prince would have alot of bullish momentum to break it and if it was to stop at the 127% or 1500/1503 area, it would not have broken the trend-line but has.. making our ABCD pattern a extended retracement which does happen in a bullish fibonacci retracement.(Will post a separate image/example of this) and also completing head and shoulders pattern which l had on my chart but later deleted because it was "ugly head + shoulders e.g not very straight forward as you see on textbook.
When markets open. l will be looking for a bullish sign for gold to head up back to (yellow zone2) 1510.17 zone/level to give us a double or even triple top or even slightly bullish to the smaller 61.8% fib retracement (yellow zone1) before heading back down lower to the yellow zone 3+4, but if 1510.17 level (yellow zone2) does not hold, l will be looking for a break above and retest to enter long at 1510 and will be keeping this at the back of my mind because we have already reached 61.8% which we can see at 1503.29 but l do not think this is our finally destination for a C leg as gold loves to quickly wick down and back up for a double or triple top before going lower and believe this would be the case here again as Box 3.. Shows a example of this. Just like the smaller ABCD you see on 1hour. Price comes up. wicks down. Does a double top, goes lower down to 61.8% retracement and reserves. (Please keep in mind, price will not move the same but similar. Take with a pinch of salt).
My second reason is because on the daily we closed on a shooting star as well as the 4hour with a massive wick, closing below the 1510.17 level/zone (yellow zone 2) which two hammers either side and back into the 4hour channel as if it was a "fake breakout". l do not think this is a price reversal sign but a retracement because on the weekly the candle is bullish engulfing. Small but still bullish and on the daily.. the shooting star is green not red, price closed above opening price.. indicating that there is still bulls in the market and Both hammers in the 4hour charts beside the shooting star, are both also green, So l do not think its sellers coming into the market and having a reversal but some buyers taking profits.
and we have to take into consideration gold has always been bullish, shooting stars have happened several times this past 2 months but have not turned the trend but only a retracement. Gold like to repeat itself. Uptrend with a month or 2 of consolidation/retracement and we was unable to break the 1479/1480 level and as before gold loves to repeat it self and loves double top. When we was last in this consolidation area/zone back in 2011. Gold did a double top and bootm before deciding where it was to go. Long term l am looking to head up to 1554/1555 area to retest (double top) or even break through.
l would love to see price back down to the 1495 (yellow zone4) where we see the 32% + 127% +100% , to retest the long term daily +4hour trendline as well as the trending channel and when price on the fib retrancement hit 32%, it usually dramatically reverses and its also a previous strong resistance which is now support. (If we break this area. l will be looking bearish and look for sign to enter short)
And lets not forget.. next week news and looking at forexfactory. Monday we "looking" like we have good news for USD, which usually mean xau down. Giving us our retracement on Monday and then Tuesday onwards.. "looks" like bad news for USD, which usually mean xau up. (Not the best person on trading news but this is my quick over view on the news and l say "looks" like because we dont know until the day +time +moment). Next week seems to be full of negative news for EUR+GBP+JPY when theses currencies go down. Gold usually goes up and also in general, when currency is down. Gold is up.
When markets open. l will be looking for a bullish sign for gold to head up back to (yellow zone2) 1510.17 zone/level to give us a double or even triple top or even slightly bullish to the smaller 61.8% fib retracement (yellow zone1) before heading back down lower to the yellow zone 3+4, but if 1510.17 level (yellow zone2) does not hold, l will be looking for a break above and retest to enter long at 1510 and will be keeping this at the back of my mind because we have already reached 61.8% which we can see at 1503.29 but l do not think this is our finally destination for a C leg as gold loves to quickly wick down and back up for a double or triple top before going lower and believe this would be the case here again as Box 3.. Shows a example of this. Just like the smaller ABCD you see on 1hour. Price comes up. wicks down. Does a double top, goes lower down to 61.8% retracement and reserves. (Please keep in mind, price will not move the same but similar. Take with a pinch of salt).
My second reason is because on the daily we closed on a shooting star as well as the 4hour with a massive wick, closing below the 1510.17 level/zone (yellow zone 2) which two hammers either side and back into the 4hour channel as if it was a "fake breakout". l do not think this is a price reversal sign but a retracement because on the weekly the candle is bullish engulfing. Small but still bullish and on the daily.. the shooting star is green not red, price closed above opening price.. indicating that there is still bulls in the market and Both hammers in the 4hour charts beside the shooting star, are both also green, So l do not think its sellers coming into the market and having a reversal but some buyers taking profits.
and we have to take into consideration gold has always been bullish, shooting stars have happened several times this past 2 months but have not turned the trend but only a retracement. Gold like to repeat itself. Uptrend with a month or 2 of consolidation/retracement and we was unable to break the 1479/1480 level and as before gold loves to repeat it self and loves double top. When we was last in this consolidation area/zone back in 2011. Gold did a double top and bootm before deciding where it was to go. Long term l am looking to head up to 1554/1555 area to retest (double top) or even break through.
l would love to see price back down to the 1495 (yellow zone4) where we see the 32% + 127% +100% , to retest the long term daily +4hour trendline as well as the trending channel and when price on the fib retrancement hit 32%, it usually dramatically reverses and its also a previous strong resistance which is now support. (If we break this area. l will be looking bearish and look for sign to enter short)
And lets not forget.. next week news and looking at forexfactory. Monday we "looking" like we have good news for USD, which usually mean xau down. Giving us our retracement on Monday and then Tuesday onwards.. "looks" like bad news for USD, which usually mean xau up. (Not the best person on trading news but this is my quick over view on the news and l say "looks" like because we dont know until the day +time +moment). Next week seems to be full of negative news for EUR+GBP+JPY when theses currencies go down. Gold usually goes up and also in general, when currency is down. Gold is up.