Let us start with a look at the weekly chart. Gold has been bullish since mid-2018 while there have been a couple of large retracements including the current one. I have drawn a S/R zone just below the 1800 price (purple color). In my opinion, this is a very significant area. I am treating this as a long/short zone – As long as price remains above it, I am bullish and if it closes below it (on a daily chart) my bias will switch to bearish.
With this bullish bias, I studied the daily chart but am showing the H4 because it helps me explain my analysis more clearly. You can now see some other s/r zones where price has reacted. I have also drawn a parallel channel that price has been respecting since mid-August. Since my bias is bullish, I will be watching price action at my zones and at the bottom of the channel.
While my bias is bullish, I am not married to that position. I also note that the recent bearish move was impulsive, retracements were quite shallow. Obviously, the bulls have not been able to gain much ground in the last 2 attempts they made. We have to see what happens next. I will be watching price action very closely on H1 to get a sense if the control of the market is getting transferred to the bulls before I commit to taking a trade.
Please use sound money and risk management in all your trades.
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With this bullish bias, I studied the daily chart but am showing the H4 because it helps me explain my analysis more clearly. You can now see some other s/r zones where price has reacted. I have also drawn a parallel channel that price has been respecting since mid-August. Since my bias is bullish, I will be watching price action at my zones and at the bottom of the channel.
While my bias is bullish, I am not married to that position. I also note that the recent bearish move was impulsive, retracements were quite shallow. Obviously, the bulls have not been able to gain much ground in the last 2 attempts they made. We have to see what happens next. I will be watching price action very closely on H1 to get a sense if the control of the market is getting transferred to the bulls before I commit to taking a trade.
Please use sound money and risk management in all your trades.
If you like my analysis, please give it a "thumbs up" and follow me to get immediate notifications.