GOLD has recently broken the yellow resistance line of descending maximums. Now this line has turned into support for new descending minimums of the overall tendency. Additionally, the 200 MA is also acting as a support for the price right now.
At the moment the price is fluctuating between the yellow line (strong support) and the purple zone (previous support turned into resistance). I think the price should break the purple resistance zone, if it does it may create a new descending channel parallel to the previous one and with the dotted line as resistance.
Right now I will just observe how price evolves over the following days/weeks. If price breaks the purple resistance zone and gives a good retest, it may be good opportunity to open a long position. But CAUTION! because the overall trend still seems to be bearish.
All new ideas, comments and suggestions are welcomed. Farewell folks!! :D
At the moment the price is fluctuating between the yellow line (strong support) and the purple zone (previous support turned into resistance). I think the price should break the purple resistance zone, if it does it may create a new descending channel parallel to the previous one and with the dotted line as resistance.
Right now I will just observe how price evolves over the following days/weeks. If price breaks the purple resistance zone and gives a good retest, it may be good opportunity to open a long position. But CAUTION! because the overall trend still seems to be bearish.
All new ideas, comments and suggestions are welcomed. Farewell folks!! :D