Previously identified crucial levels were identified as ...1165, 1177, 1181, 1196, 1205, 1215, 1230, 1254, 1264.
Even if we break upwards from this descending channel (red) today, courtesy of a favorable FOMC meeting, gold will still consolidate around $1180 for 2-4 weeks in my view. This has been a harsh fall, with a lot of volume and many fools like me have gotten stuck. So as gold prices go up, those stuck will begin selling and will become resistances to gold price increasing. So it seems logical that an upward break from this channel will consolidate till strength and confidence is gathered by new longs to take out those who are stuck. Logical tendency would be to tire out existing longs and have them fold at lower levels.
If its unable to break the trend line upwards and breaks below $1156, cut your longs.
Good luck to all!
Even if we break upwards from this descending channel (red) today, courtesy of a favorable FOMC meeting, gold will still consolidate around $1180 for 2-4 weeks in my view. This has been a harsh fall, with a lot of volume and many fools like me have gotten stuck. So as gold prices go up, those stuck will begin selling and will become resistances to gold price increasing. So it seems logical that an upward break from this channel will consolidate till strength and confidence is gathered by new longs to take out those who are stuck. Logical tendency would be to tire out existing longs and have them fold at lower levels.
If its unable to break the trend line upwards and breaks below $1156, cut your longs.
Good luck to all!