Hi guys.
Gold has been on a nice move up from its breakout earlier this year but it is heading into a zone where it may face really strong resistance and selling pressure for a while.
The box ive drawn in the chart and more importantly the purple line is the 1.618 retracement of 2011 high to 2015 low. The 1.618 retracement is always a good focal point for any instrument that is at all time highs but this one for gold is especially more so due to the large base that it went through and the length of time it has taken to arrive at this point. The zone also has the 1.13 and 1.27 retracement of its most recent high to low as well as the 0.618 trend based fib extension from the latest impulse move on the daily timeframe...18/3/24 to 12/4/24 to 3/5/24.
There is also a shark harmonic pattern with excellent fib ratios and entry level of 1.13 right at the zone.
These 3 levels and a completed harmonic pattern around the same area should serve as formidable resistance to gold bulls and will likely be a nice level to look for short trades. Currently price has not quite entered the zone I've mentioned and may just retrace without doing so but I'll be looking for trades only within this zone.
Lower time frame entries using chart, candlestick patterns or price action CHOCH BOS, trendline breaks etc could result in some nice risk to reward trades.
Safe trading all
Gold has been on a nice move up from its breakout earlier this year but it is heading into a zone where it may face really strong resistance and selling pressure for a while.
The box ive drawn in the chart and more importantly the purple line is the 1.618 retracement of 2011 high to 2015 low. The 1.618 retracement is always a good focal point for any instrument that is at all time highs but this one for gold is especially more so due to the large base that it went through and the length of time it has taken to arrive at this point. The zone also has the 1.13 and 1.27 retracement of its most recent high to low as well as the 0.618 trend based fib extension from the latest impulse move on the daily timeframe...18/3/24 to 12/4/24 to 3/5/24.
There is also a shark harmonic pattern with excellent fib ratios and entry level of 1.13 right at the zone.
These 3 levels and a completed harmonic pattern around the same area should serve as formidable resistance to gold bulls and will likely be a nice level to look for short trades. Currently price has not quite entered the zone I've mentioned and may just retrace without doing so but I'll be looking for trades only within this zone.
Lower time frame entries using chart, candlestick patterns or price action CHOCH BOS, trendline breaks etc could result in some nice risk to reward trades.
Safe trading all
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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.
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.