As seen in the chart; Gold has taken a nosedive overnight to test 1800s again.
we have seen some pretty immediate recovery as a result of the sharp move.
The current fib is being followed quite closely; therefore I see this -61.8 move to 1860 as a high probability.
Using the stoch as an indicator of resistance; Gold tends to make a new high as stochs make a new low. this is followed by a new move down or up.
If the current speculation plays out, we can expect some standard consolidation, HH/HL on 15M, approaching the 1927/1930 area before a potential fake out and continuation towards the -61.8 range.
Invalidation of this will be a break and sustain or close above 1945 area where next resistance area and major reaction point is.
1860 will reassess potential reversals; or whether we are in for a sustained downtrend until global markets settle and correlations become more clear once again.
at current, This is the 100MA on Daily, and a large telling point of long term trend.
Fundamentally, I belive this is likely for the following reasons;
- Recent Bull run from 1280 >> 2070 has exhausted Upside potential for the short term.
- Liquidity in lower price ranges yet to be revisited
- Institutions and banks are wise enough not to load further longs at such a high price; and will seek to draw in FOMO retail shorts down into the low 1800/high 1700s before positioning themselves for the new run to ATH.
we have seen some pretty immediate recovery as a result of the sharp move.
The current fib is being followed quite closely; therefore I see this -61.8 move to 1860 as a high probability.
Using the stoch as an indicator of resistance; Gold tends to make a new high as stochs make a new low. this is followed by a new move down or up.
If the current speculation plays out, we can expect some standard consolidation, HH/HL on 15M, approaching the 1927/1930 area before a potential fake out and continuation towards the -61.8 range.
Invalidation of this will be a break and sustain or close above 1945 area where next resistance area and major reaction point is.
1860 will reassess potential reversals; or whether we are in for a sustained downtrend until global markets settle and correlations become more clear once again.
at current, This is the 100MA on Daily, and a large telling point of long term trend.
Fundamentally, I belive this is likely for the following reasons;
- Recent Bull run from 1280 >> 2070 has exhausted Upside potential for the short term.
- Liquidity in lower price ranges yet to be revisited
- Institutions and banks are wise enough not to load further longs at such a high price; and will seek to draw in FOMO retail shorts down into the low 1800/high 1700s before positioning themselves for the new run to ATH.