We can see that gold is giving us a very simple potential trade setup. On the daily timeframe, the price has been moving above a strong line that has previously acted as both support and resistance since the beginning of the year 2019. Since then we have already tested it three times and it held every time. We are testing it again right now. As the bearish moves were lately always bigger than the bullish, we can identify that our current trend is also bearish. But as it does not look that strong to us, we expect this line to hold again. If not, we are also going to be taking a short trade. We are looking for the price to break below and confirm its breakout, or to bounce back up.
On the four hour chart, we can see a descending triangle formation. But as it is really small on this timeframe, we do not expect a bearish move big enough to trade on the four-hour chart.
On the 1H chart, we can take a better look at the before mentioned descending triangle. This is a corrective structure, so the next move after the breakout should be the motive wave before the price entered this triangle. In this case, it was a bullish move. So we do expect a breakout above the upper triangle line and a bigger bullish move just as we do expect the same on the daily chart.
Feel free to grab a copy of our Free Weekly Market Outlook here:
[url=mailchi.mp/bc78576d6f40/freeweeklymarketoutlook ]mailchi.mp/bc78576d6f40/freeweeklymarketoutlook
We wish you good luck with your trading!
On the four hour chart, we can see a descending triangle formation. But as it is really small on this timeframe, we do not expect a bearish move big enough to trade on the four-hour chart.
On the 1H chart, we can take a better look at the before mentioned descending triangle. This is a corrective structure, so the next move after the breakout should be the motive wave before the price entered this triangle. In this case, it was a bullish move. So we do expect a breakout above the upper triangle line and a bigger bullish move just as we do expect the same on the daily chart.
Feel free to grab a copy of our Free Weekly Market Outlook here:
[url=mailchi.mp/bc78576d6f40/freeweeklymarketoutlook ]mailchi.mp/bc78576d6f40/freeweeklymarketoutlook
We wish you good luck with your trading!
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.
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.