GOLD A Great Setup to go LONG. Price at Crucial Monthly Support!
For Decades now the yellow metal has been precious and the long term trend also indicates that its an uptrend. Looking at the monthly charts there is a clear ascending trendline which has been tested and held for more than 5 occasions. This is a very strong indication that the dynamic trend line is acting as a crucial support.
Looking closely at the weekly charts, it can be observed that the longterm trendline is being tested. In my opinion its been held for more than 5 occasions and i think this time it will be held as well. Also i have another reason to believe that GOLD being a precious metal would NOT DIP that much.
Now coming onto the daily charts, it can be seen that the price has been confined in the downward channel. Its a further confluence factor that the rebound or any reversal candle would indicate the price will likely head up. A HAMMER has already been formed indicating a reversal is a likely scenario.
Now Finally, to confirm a reversal at the crucial support, The main chart shows a channel developing (4 hour charts).i would personally prefer for the price to break the channel on 4 hour time frame and retest the 50 EMA before i take this position LONG. Overall its a excellent set up with multiple confluence factor in favor of our direction. Stay tuned for any signals in the comment
IF YOU LIKE MY ANALYSIS, PLEASE GIVE ME A THUMBS UP AND FOLLOW ME FOR MORE ANALYSIS
Looking closely at the weekly charts, it can be observed that the longterm trendline is being tested. In my opinion its been held for more than 5 occasions and i think this time it will be held as well. Also i have another reason to believe that GOLD being a precious metal would NOT DIP that much.
Now coming onto the daily charts, it can be seen that the price has been confined in the downward channel. Its a further confluence factor that the rebound or any reversal candle would indicate the price will likely head up. A HAMMER has already been formed indicating a reversal is a likely scenario.
Now Finally, to confirm a reversal at the crucial support, The main chart shows a channel developing (4 hour charts).i would personally prefer for the price to break the channel on 4 hour time frame and retest the 50 EMA before i take this position LONG. Overall its a excellent set up with multiple confluence factor in favor of our direction. Stay tuned for any signals in the comment
IF YOU LIKE MY ANALYSIS, PLEASE GIVE ME A THUMBS UP AND FOLLOW ME FOR MORE 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.