Yesterday we talked about the fact that gold will move in two stages. And the first of them - namely, the price rise to the resistance line has just passed.
As you can see on the chart after a strong upside momentum from the support line that happened in August, Gold is in a long downtrend.
The price movement in the thread is caused by two rather strong support and resistance lines. Recently, the price was able to break through the support line, but having dropped to the strong zone - the level and the line - rose again. This gave the price a good impetus for growth, so right now we can see that it approached a strong resistance line and touched it at the point 1867.36.
It is important to note that over the past four months the price was able to break this line only once. And this breakdown occurs during the election period in the USA - that is, this is not a typical situation for the price. Therefore, even now there is no reason to expect that the price will be able to break through this line and break the trend.
Therefore, I expect the price to fall from this resistance line back to the support line around 1801.72, where the support level is.
And this is a good position to open a sell trade. I will never tire of reminding you of the importance of SL - set it just above the resistance line 1889.62.
Traders, if you liked this idea or have your opinion on it, write in the comments. I will be glad👩💻
This Post SELL trade you closed ? if not why you update an new post on 14th Dec saying if break the RR then BUY but this post SL is higher then the latest post BUY entry point
brunanurb
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I agree with you. I believe we are having an ABCD pattern right now. What makes perfect sense in the middle of the big down trend.
curiousTacos80635
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tq for sharing your superb analysis in goldcat least i hv something for confirmation trade in gold..