GOLD, Approaching Main Target Zone, Huge Reversal Incoming!Hello, Traders Investors And Community, welcome to this update-analysis about the current situation facing GOLD, last weeks and months GOLD was trading in a solid uptrend with high volatility within it but it held to the point at which it is trading at the moment. In my observation I discovered important signs which increasing the possibility for a reversal to the downside. As I already mentioned on the shorter 4-hour timeframe we have still some bullish signs which can add to the overall edge we have on the short-time-frame, if you did not already see this analysis I highly recommend that you watch it by going to my account and look at it. This bullishness on the short-time-frame, however, can change dramatically when GOLD will fill the proper scenario therefore we are looking at the weekly timeframe.
Confirmed Bull-Flag (4-Hour Timeframe):
As you can see in my chart GOLD formed a huge upward rising channel with some good and solid volatility within the channel, the last weeks we saw a breakout of the channel with an immediate pull-back-reaction with high volatility back into the channel, this was the first encounter with the high levels of supply which will increase further in GOLD the next time, also this move was due to the corona-crisis and its main restrictions affecting almost all important global markets. Therefore this move is an overall bull-trap that is currently forming in GOLD outside this huge upward-channel. As the stock-market currently approaching significant levels of a possible reversal that can affect GOLD also, therefore, we should keep the current price-action under monitoring.
The next time we can expect GOLD to move some higher approaching the overall resistance-level we have higher up in the structure which you can see marked in my chart with the orange box between the 1780 and 1860 price-levle, this level is extremely important because it is marking the target of the meaningful huge head and shoulder formation which you can see in my chart, normally after these levels where reached supply will enter the market which will cause more bearish pressure when bulls cant advance further in this level due to high amounts of supply entering the market. After we have falling back into the channel the likelihood for more bearish pressure to the downside increases.
After these targets where reached and the reversal confirmed it is withing the likelihood spectrum that GOLD visits again the inner world of the upward rising channel. Remember that this scenario has to be confirmed properly otherwise GOLD can still confirm the upper boundary of the channel to set up for some more legs to the upside. There are many people calling for the moon to reach in 2020 for GOLD but that is not likely at the moment and its mere speculation, the bearish reversal scenario is more probable right now and when it confirms it will make 2020 to a more bearish year overall, after this happens we need to see and prepare how GOLD continues further and if we can get a possible stabilization in the former level.
In this manner, thanks for watching everybody, support for more market insight and all the best!
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Information provided is only educational and should not be used to take action in the markets.
