Long
Gold looks prime for BIG September
Historical data of gold shows that September has always been a very significant gain month for this particular commodity. Using this we can create some confluence and frame what is going on right now.
From just a raw price action standpoint gold looks to have created a local bottom, with a nice double bottom formation, having the 2nd low being higher than the first. On the daily we have two candles around the support forming a BELT HOLD candlestick pattern, that would be confirmed by a third, engulfing candle stick.
Assuming this level holds we could see some major upswings, as gold retests the daily fibos of its current lower move.
DOLLAR STRENGTH, could potentially impact any gold gains however with the risk off environment being so strong and everyone looking forward to the impending recession of the US economy, its not difficult to form a hypothesis that includes both the USDX hitting new highs and gold returning to new highs as well.
This analysis is for a BUY SWING, that would involve a pretty substantial Stop loss of at least 250 pips if entering the trade now, however with GOLD, upswings can come very rapidly. This creates the potential for an 1800+ pip retracement, so this pair is sure to reward any PATIENT traders this month, if these current levels hold.
I dont use RSI, MACD, or other technical indicators when considering my analysis.
From just a raw price action standpoint gold looks to have created a local bottom, with a nice double bottom formation, having the 2nd low being higher than the first. On the daily we have two candles around the support forming a BELT HOLD candlestick pattern, that would be confirmed by a third, engulfing candle stick.
Assuming this level holds we could see some major upswings, as gold retests the daily fibos of its current lower move.
DOLLAR STRENGTH, could potentially impact any gold gains however with the risk off environment being so strong and everyone looking forward to the impending recession of the US economy, its not difficult to form a hypothesis that includes both the USDX hitting new highs and gold returning to new highs as well.
This analysis is for a BUY SWING, that would involve a pretty substantial Stop loss of at least 250 pips if entering the trade now, however with GOLD, upswings can come very rapidly. This creates the potential for an 1800+ pip retracement, so this pair is sure to reward any PATIENT traders this month, if these current levels hold.
I dont use RSI, MACD, or other technical indicators when considering my analysis.
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.