Previous Week Update:
Gold broke out of my ranging box, didn’t follow the exact path but after it broke out, it came back for a retest and then flew higher We should see a continuation of bulls to 1135~1137. Why? Look left.
Monthly: Monthly closed extremely bullish, confirming a monthly triangle breakout upwards. We should continue higher to test the highs. Where we can either break above those highs to create a Higher High or create a double top on the monthly.
Weekly: Weekly closed extremely bullish, confirming my previous week’s analysis of me saying that it would be a continuation. If you look left we have a wick to fill, with this momentum I see us filling that wick before a possibility of going lower to create a higher low and then continuing our journey to the highs of 1355.
Daily: Nice Ranging box breakout, came for a retest of the 1300 levels and continued higher. Still respecting the overall bullish trend and shows no sign of exhaustion. Look left and we are most likely going to 1335~1337 before we go lower for a higher low.
H4: Here we have a closer look on the ranging box breakout (on H4 was a bullish flag). We broke upwards, retested broken resistance and then continued higher, respecting a trendline. As you can see I have 2 trendlines as both are still valid since none of them have been broken. If we want to go lower to test the trendline or even have a possibility of being bears, we will create a double top and then break the first trendline. If not we will go to 1335, and most likely come back to retest broken resistance, but if we break lower we will need to break trendline to confirm bears.
Gold Overall Analysis
- From the technical and fundamentals, I see bullish bullish bullish Gold. Nothing tells me it is going to reverse. Gold is a safe haven commodity; North Korea situation is causing tension and uncertainty and this leads to a bullish Gold and Japanese Yen.
- Wait for price action to tell you where we are going, if there is a break of the current level I will be looking to buy to 1335 as first target and leaving SL under the previous minor Higher Low.
I see path A as the most likely option because of what happened over the weekend with Kim Jung Un and Trump, but we will have to wait for price action to tell us where is wants to go. Lots of possibilities, and price action always gives us the clues.
My paths that I draw are not signals, they are possibilities of what might happen, watch what price does, where it goes, and draw yourself a possible pathway on the direction you want price to go. Visualization is a powerful tool.