Hi Traders,
I just took my time to look at my gold chart in much details strictly on the daily and I found out Gold may be retesting the 1790 -1802 zone with a possibility of extension to 1808 zone. hence the reason for SL above that Zone.
If you look very closely, you will see that price is currently trading within the yellow zone after the rejection of the 50% fib, which might just be a retracement to the 38.2% fib ZONE where price took off 3 trading days ago after breaking the 50EMA to test the most recent BEARISH ORDER BLOCK. That same order block is currently being rejected and the inability for price to break above it may mean that gold would have to fill the imbalance created on the congress election day and take price back to the 1675-1684 zone before a major bullish run towards the 1790 -1802 zone.
It is however important to know that the W-Patter formation is yet to be confirmed and that needs to be confirm before getting to the 1680 zone for the next bullish run, however, this may have been confirmed already in lower time frame and may have made the pattern valid.
All I see is the need for patience and getting confirmations right before getting into a trade.
I would like to see the imbalance correction before any bullish run, otherwise, it may be dangerous to get into a buy trade at the moment.
Trade with care and proper risk management.
Enjoy the rest of the trading days of the week.
I just took my time to look at my gold chart in much details strictly on the daily and I found out Gold may be retesting the 1790 -1802 zone with a possibility of extension to 1808 zone. hence the reason for SL above that Zone.
If you look very closely, you will see that price is currently trading within the yellow zone after the rejection of the 50% fib, which might just be a retracement to the 38.2% fib ZONE where price took off 3 trading days ago after breaking the 50EMA to test the most recent BEARISH ORDER BLOCK. That same order block is currently being rejected and the inability for price to break above it may mean that gold would have to fill the imbalance created on the congress election day and take price back to the 1675-1684 zone before a major bullish run towards the 1790 -1802 zone.
It is however important to know that the W-Patter formation is yet to be confirmed and that needs to be confirm before getting to the 1680 zone for the next bullish run, however, this may have been confirmed already in lower time frame and may have made the pattern valid.
All I see is the need for patience and getting confirmations right before getting into a trade.
I would like to see the imbalance correction before any bullish run, otherwise, it may be dangerous to get into a buy trade at the moment.
Trade with care and proper risk management.
Enjoy the rest of the trading days of the week.
Note
Gold Bulled as expected. Broke 200 EMA on the daily and currently making some correction. Really safe to stay away from selling at the moment until we see how price react to 1801-1808 zone.It may also be advisable not to buy either and wait for price action as I see this pair overbought on most higher time frames ad may just correct significantly before the bull.
I will wait to see how this pair reacts to the news later in the day before taking new positions
Note
Gold is playing out as expected
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.