Gold has broken out of my ascending channel for the first time since the first tap of the channel bottom on the 10th June. This is extremely significant as Gold has been bullish for a long time and is due for a massive correction. Gold has been sitting in a $25 range for quite some time now hence why it seems likely that it will make a move either to the downside or upside. I have marked out a level around 1788-1790. If Gold is to break below this level and we can see a candle body close below this area, I would expect gold to retest the 1788 mark before a long move down. The reason why my bias is more inclined to the downside, is purely because at this moment in time, Gold is showing strong bearish pressure on the MACD on the 4H and daily timeframes as it keeps retesting and breaking below structures that it is forming on the lower time frames. In addition to this, the EMA 50 on the 4H timeframe is currently above the price action which is another indication that we should be looking for an opportunity to short the pair. Personally I have a long term positional short on gold, I entered two weeks ago at 1794 and I am looking to hold the short for the next 6 weeks or possibly longer where I would expect gold to consolidate to a level where the price is less than $1500. Of course this is before a long term move to $1900+ for sure.
If you have any questions or counter arguments then please feel free to contact me.
Thank you
If you have any questions or counter arguments then please feel free to contact me.
Thank you