GOLD: TRADING VIEW 25/03
Updated
As mention before, the price has reached the most immediate Support area, and here is where the things are interesting
... why? ...
Because at the extremes one is able to find opportunities for entry with a small risk relative to its potential profit, moreover if you are wrong in the initial hypothesis is easy to scratch the trade and be ready for re enter the market
.... therefore be ready to pull the triggered depending on your strategy and look for the continuation of the down movement or the false break out of the support, in any case right now I would be looking to enter short only if there are followers below the most immediate Swing Low
... why? ...
Because at the extremes one is able to find opportunities for entry with a small risk relative to its potential profit, moreover if you are wrong in the initial hypothesis is easy to scratch the trade and be ready for re enter the market
.... therefore be ready to pull the triggered depending on your strategy and look for the continuation of the down movement or the false break out of the support, in any case right now I would be looking to enter short only if there are followers below the most immediate Swing Low
Note
Update: Context Down Trend Channel Note
It seems that right now the price is testing the previous resistance, therefore in this point is a key reference in order to determinate if there are followers to the downside ... lets see how it goesNote
The price is consolidating below the previous support now resistanceNote
the price seems to find no followers to the downside and is breaking previous resisntance, this fact reinforce the idea of a trend channel, in this order of ideas the trading strategy should have into account this kind of context in order to be effectiveNote
Now the market has already confirmed that the price is within a context of a down trend channel, after going to test the upper limit and find supply around the extreme.However is important to mention that as a trader one should always be looking to the bigger picture and one can see that after a failed attempt to keep pushing higher (Previous Uptrend Channel) now the sellers are testing if there are some follow through to the downside, notwithstanding there is not much conviction and a possible congestion could be going on(extremes are defined with the blue lines in the chart)
Note
Now once again the market is showing supply around the upper limit of the Trend Channel (Limit that was defined 6 days ago), for the moment in order to continue with this market context in the medium term (Trend Channel) the price must break down the blue area which is a preliminary resistance if the price is able to do this then the TC continues if not is most likely that we are facing some congestion in this timeframe.
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