Gold is being sold aggressively following Powell's comments on the expected inflation yesterday, despite being considered a counter-inflation asset. Technically that sell-off can be attributed to the chart I posted 1 week ago on the selling pressure that the top of the long-term Triangle applies:
On the shorter term and the 1D time-frame, Gold has formed a very structured Channel Up. That is similar to the pattern of late September - October, which eventually broke to the upside and reached as high as the 3.0 Fibonacci extension. In case of a breach there is a last Support involved, which on November 03 gave the final bottom before the rally. We have set a medium-term target of 1875 (just below the next Resistance) for the next Higher High.
@anand1988, Thank you. No update on Oil thus far. It is going according to plan.
anand1988
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@TradingShot, ok bro waiting for feb 2nd week for bear mode!
husseindergham
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Thank you for sharing very informative This is how I analyzed it
On the Daily Chart
We had the long term downtrend in red holding gold downward which was created when the first daily level resistance level (1869) was respected. The second daily resistance level held the move downward in addition to our downtrend which showed our huge downward move for gold
On the 4H Chart
I added the 4H chart just to show how the trend and the levels where seen and respected
On the hourly chart
We can see how the hourly support levels were respected and broken We have a new internal downtrend on the hourly chart that was drawn in red color