Gold's been on a stellar run with a strong campaign initiated at the start of September which broke out of a beautiful Wyckoff accumulation on the much higher time frame BUEC. Overall still very bullish for gold over the next 18-24months.
In the current price action we've had a strong push up from $2,590 where we have found a new trading range. We had a potential spring event that failed to breakout which shows some weakness in the market right now suggesting more of a distribution/selling/profit taking event.
Since this spring the range has tightened and tested both extremes of the range at the purple circles indicating no real support either way to rally further or sell of. The volatility is suggesting selling activity however we will not know until the range is completed. This smaller range can also be a test of the potential spring event
Expecting the market to show us an answer over the coming days as price continues to contract in a bearish fashion however this can still always mean 2 things, that
1. sellers are exhausted or nearing the end of taking profits and demand is strong
or
2. demand is weakening
Now looking for another potential spring event that dips below the prior one, if this shows any weakness and fails its going to be a sharp quick drop to the next high volume node at $2,580.
Trading opportunities to go long will be in the green circle in which will be a faster reversal given the location as this would also represent another higher time frame test of the consolidation breakout that happened at the start of September
or
At a successful spring event test back in the range.
or
The failure of a spring event not able to reclaim the range and going short to the next high volume node in the green circle.
In the current price action we've had a strong push up from $2,590 where we have found a new trading range. We had a potential spring event that failed to breakout which shows some weakness in the market right now suggesting more of a distribution/selling/profit taking event.
Since this spring the range has tightened and tested both extremes of the range at the purple circles indicating no real support either way to rally further or sell of. The volatility is suggesting selling activity however we will not know until the range is completed. This smaller range can also be a test of the potential spring event
Expecting the market to show us an answer over the coming days as price continues to contract in a bearish fashion however this can still always mean 2 things, that
1. sellers are exhausted or nearing the end of taking profits and demand is strong
or
2. demand is weakening
Now looking for another potential spring event that dips below the prior one, if this shows any weakness and fails its going to be a sharp quick drop to the next high volume node at $2,580.
Trading opportunities to go long will be in the green circle in which will be a faster reversal given the location as this would also represent another higher time frame test of the consolidation breakout that happened at the start of September
or
At a successful spring event test back in the range.
or
The failure of a spring event not able to reclaim the range and going short to the next high volume node in the green circle.
Note
Decisive move down overnight. Need to see if we reclaim the zone with a spring event or will it reject signaling further downside.
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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.