Here is a look at gold with Bollinger Volatility bands.
In late December 2016 gold price made a move away from the lower Bollinger band and has last week touched the upper Bollinger band. Price reaction here was a quick movement away from the band, with close breaking the 1 SD upper band.
This week price has tested the 1 SD band as resistance , and has moved away.
If price moves again to the opposite 2 SD lower Bollinger band then likely resistance ( targets for a short trade) would be
1. Quarterly Support at the moving average@ 1258.50
2. The 20W MAV = 149.15.
3. Fair Value @ 1224.
4. The lower Bollinger Band @ 1205
5. Strong Resistance at supply zone of 1120 -1180.
NB : For price to move towards the lower band , we need to see a strong bearish candle break with close beyond the 20W MAV.
In late December 2016 gold price made a move away from the lower Bollinger band and has last week touched the upper Bollinger band. Price reaction here was a quick movement away from the band, with close breaking the 1 SD upper band.
This week price has tested the 1 SD band as resistance , and has moved away.
If price moves again to the opposite 2 SD lower Bollinger band then likely resistance ( targets for a short trade) would be
1. Quarterly Support at the moving average@ 1258.50
2. The 20W MAV = 149.15.
3. Fair Value @ 1224.
4. The lower Bollinger Band @ 1205
5. Strong Resistance at supply zone of 1120 -1180.
NB : For price to move towards the lower band , we need to see a strong bearish candle break with close beyond the 20W MAV.