Second Analysis – GOLD – approaching key Local S/R where a technical bearish retest is probable.
Points to consider, - Rising Wedge (Bearish) - Local S/R Resistance - 200 MA Resistance - .618 Fibonacci Confluence - 21 MA Dynamic Support - Oscillators Technical Divergence
GOLD’s immediate Price Action is trading in a rising wedge, breaking down will allow us to have a bearish bias on the market.
The Local S/R is current key resistance that is in confluence with the 200 MA and .618 Fibonacci. Price Action is likely to have an initial rejection here.
Both Oscillators have a valid technical divergence; this will be negated if price breaks above Local S/R.
The current volume profile has been declining; an influx is probable when testing Local S/R as this is the next trade location.
Overall, in my opinion, GOLD is a valid short with defined risk, invalidation is above local S/R. Price Action is to be used upon discretion/ management of trade.
Hope this analysis helps
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