Gold- my reasons for buying
On Sunday I've written a comment saying that " The H&S will not pay off "
, AND IS STILL MY BELIEF THAT WE DO NOT HAVE AN H&S IN PLACE! So, I will start with this, why it is not an H&S?
1. First of all, it doesn't even look like an H&S
2. Beyond its particular look, H&S needs to suggest something: failure for buyers on the second shoulder, here we have a range on the second shoulder and more of a consolidation, not a desire to selling
3. The target for this H&S is well under 1800, at the previous recent low. And I don't see a fundamental reason for Gold to go there.
So, back to the buying part...
On the long term, Gold is in a clear uptrend and the drop from 2100 to 1765 was just a correction of this long term trend (also the structure of the drop is clearly corrective)
This first leg up has 1100 pips, so a correction to this bull run is normal and, as we can see, Gold corrected to 1820 strong support and also 50% fibo.
And if we ignore what some call "the head", in fact, we have a consolidation in a range between 1820 and 1850 which usually leads to continuation.
Time will tell, but I will remain to my opinion that dips on Gold should be bought
, AND IS STILL MY BELIEF THAT WE DO NOT HAVE AN H&S IN PLACE! So, I will start with this, why it is not an H&S?
1. First of all, it doesn't even look like an H&S
2. Beyond its particular look, H&S needs to suggest something: failure for buyers on the second shoulder, here we have a range on the second shoulder and more of a consolidation, not a desire to selling
3. The target for this H&S is well under 1800, at the previous recent low. And I don't see a fundamental reason for Gold to go there.
So, back to the buying part...
On the long term, Gold is in a clear uptrend and the drop from 2100 to 1765 was just a correction of this long term trend (also the structure of the drop is clearly corrective)
This first leg up has 1100 pips, so a correction to this bull run is normal and, as we can see, Gold corrected to 1820 strong support and also 50% fibo.
And if we ignore what some call "the head", in fact, we have a consolidation in a range between 1820 and 1850 which usually leads to continuation.
Time will tell, but I will remain to my opinion that dips on Gold should be bought
📈 Forex & XAU/USD Channel:
t.me/intradaytradingsignals
💎 Crypto Channel:
t.me/FanCryptocurrency
🌟 Bust your trading with 50% deposit bonus:
secure.m4markets.com/links/go/5426
t.me/intradaytradingsignals
💎 Crypto Channel:
t.me/FanCryptocurrency
🌟 Bust your trading with 50% deposit bonus:
secure.m4markets.com/links/go/5426
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.