Gold looks ripe for a pullback
Обновлено
Gold prices rallied nearly 11% over a 3-week period into the cycle highs. Yet the characteristics of its clean, strong bullish move have been replaced with choppy price action since it failed to hold above $2000.
A shooting star formed on Friday following its false break of $2000 to form a lower high on the daily chart. And this was followed by a bearish engulfing day on Monday to show momentum is trying to turn lower.
Given the strength of the initial move, I suspect gold needs to pull back. The highs around $1950 make a ideal initial target for countertrend trade, whilst prices remain beneath Friday's 'shooting star' high.
We can reassess its potential for a swing low if prices pullback and respect support.
A shooting star formed on Friday following its false break of $2000 to form a lower high on the daily chart. And this was followed by a bearish engulfing day on Monday to show momentum is trying to turn lower.
Given the strength of the initial move, I suspect gold needs to pull back. The highs around $1950 make a ideal initial target for countertrend trade, whilst prices remain beneath Friday's 'shooting star' high.
We can reassess its potential for a swing low if prices pullback and respect support.
Сделка закрыта: достигнута тейк-профит цена
Gold prices retraced in line with our expectations, and in a relatively straight line. Gold is now considering a move back above the September high. Take note of the US inflation report, which is likely required to come in soft for gold to print a prominent swing low.
Похожие публикации
Отказ от ответственности
Все виды контента, которые вы можете увидеть на TradingView, не являются финансовыми, инвестиционными, торговыми или любыми другими рекомендациями. Мы не предоставляем советы по покупке и продаже активов. Подробнее — в Условиях использования TradingView.