Alright so I know it may be a little confusing but let me explain what I am seeing
Firstly we know that gold has been bearish for the last few days or so
HOWEVER
Looking at the move from yesterday we can assume that it created a W pattern which signs that the reversal may have already begun
I say Reversal because GOLD is at the end of the day a bullish market
SO
It makes sense that it will reverse to go back in that direction after inducing sellers for this period
We see (in green) the bull momentum began yesterday breaking above a zone I have drawn - and in this zone I believe that both buyers and sellers would have been induced here (red circles) Some would be buying, some would be selling
We also know that we have a news even in about an hour and 20 minutes from the time of me typing up this
What I believe is that gold will try to take out liquidity from the bottom of this zone (Blue line) and then continue its climb from there
Again I know it is messy but this is the way my mind works
I feel like sells are becoming less and less effective and buys are beginning to make more sense but we have to wait to see what happens at the low of this zone
What do you guys think?
Firstly we know that gold has been bearish for the last few days or so
HOWEVER
Looking at the move from yesterday we can assume that it created a W pattern which signs that the reversal may have already begun
I say Reversal because GOLD is at the end of the day a bullish market
SO
It makes sense that it will reverse to go back in that direction after inducing sellers for this period
We see (in green) the bull momentum began yesterday breaking above a zone I have drawn - and in this zone I believe that both buyers and sellers would have been induced here (red circles) Some would be buying, some would be selling
We also know that we have a news even in about an hour and 20 minutes from the time of me typing up this
What I believe is that gold will try to take out liquidity from the bottom of this zone (Blue line) and then continue its climb from there
Again I know it is messy but this is the way my mind works
I feel like sells are becoming less and less effective and buys are beginning to make more sense but we have to wait to see what happens at the low of this zone
What do you guys think?
