🏆 Gold has been in a strong uptrend for a while, and COVID only helped to ensure it. However, with the equities markets recovering, gold has started to correct from its previous highs. Despite the correction, we still see an uptrend and plenty of support for now. Let's take a look at some levels.
First off, we can see a channel that gold may be respecting based on reactions at the upper bound as illustrated on the chart. If this channel is in play, then we either want to see a clear continued move higher to see evidence the bulls are in control, or we want to see a test of the median with a strong recovery for short term continuation to the upside. Else, good luck bulls.
With that covered, more immediate levels of interest include the S1 range defined by lows in previous price action and a bullish orderblock, the S2 orderblock cluster, and the S3 S/R flip, all of which may act as support.
To the upside, we have the R1 local resistance (which the bulls will want to see breached) and the top of the trend line at R2 (which is the last resistance for the bears).
To sum this up, we aren't predicting the direction of price, rather mapping out some levels so we can better understand price action as it does occur. We will reassess gold upon enough of a change in price action that a setup is warranted.
Resource: kitco.com/news/2020-05-27/All-signs-are-bullish-so-why-are-gold-prices-in-a-rut.html + cnbc.com/2020/05/27/gold-markets-hong-kong-security-law-concerns-in-focus.html
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First off, we can see a channel that gold may be respecting based on reactions at the upper bound as illustrated on the chart. If this channel is in play, then we either want to see a clear continued move higher to see evidence the bulls are in control, or we want to see a test of the median with a strong recovery for short term continuation to the upside. Else, good luck bulls.
With that covered, more immediate levels of interest include the S1 range defined by lows in previous price action and a bullish orderblock, the S2 orderblock cluster, and the S3 S/R flip, all of which may act as support.
To the upside, we have the R1 local resistance (which the bulls will want to see breached) and the top of the trend line at R2 (which is the last resistance for the bears).
To sum this up, we aren't predicting the direction of price, rather mapping out some levels so we can better understand price action as it does occur. We will reassess gold upon enough of a change in price action that a setup is warranted.
Resource: kitco.com/news/2020-05-27/All-signs-are-bullish-so-why-are-gold-prices-in-a-rut.html + cnbc.com/2020/05/27/gold-markets-hong-kong-security-law-concerns-in-focus.html
✨ Drop a comment asking for an update, we do NEW setups every day! ✨
Like, Comment & Follow to help the community grow 🎉🎉
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Related publications
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.