GOLD - Still Basing Or Breaking Out ?
Updated
Many analysts are calling recent gold's breakout as a sign of the end of the correction and gold will head to a new all time high. Yet, our technical analysis has pointed out that gold could drop from this current level 1860 area to much lower price than 1830. In fact, gold could still be basing until some time near the end of the first quarter of 2022. 1920 to 1950 will only happen if gold overcomes the resistance level at 1865-1875, otherwise be prepared for a Big drop coming.
Technically, gold is facing resistance at its downtrend line from 1960, which coincides with 78.6% Fibonaci Retracement from 1960 to 1680. A 100% Fibonacci Extension move from the low of 1722 also shows its completion at 1873.
RSI indicator signals gold at the overbought level that could hint a reversal based on historical patterns. If gold does not break resistance at 1865-1875, a drop from this current level will signal that gold might be still basing in a big descending triangle.
Our recommend trade is to sell gold around 1865-1873, and target 1815.
Technically, gold is facing resistance at its downtrend line from 1960, which coincides with 78.6% Fibonaci Retracement from 1960 to 1680. A 100% Fibonacci Extension move from the low of 1722 also shows its completion at 1873.
RSI indicator signals gold at the overbought level that could hint a reversal based on historical patterns. If gold does not break resistance at 1865-1875, a drop from this current level will signal that gold might be still basing in a big descending triangle.
Our recommend trade is to sell gold around 1865-1873, and target 1815.
Trade active
Went short half posy @1865 yesterday after our analysis completed.Trade active
Went short another half posy @1875. Now we got a full shorting posy @ 1870 averagely.Note
Stop loss placed above 1880. 1st target 1830, 2nd target 1815.Trade closed: target reached
All targets reached. Great profit.
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