GOLD → Prerequisites for rise and fall. What to do?

20. Apr. 2023

Gold is forming a false breakdown relative to upward channel support. A pin bar is forming on the daily chart, but what could be wrong? What's next?

Although we have an uptrend and a false-break of the channel support, we have the preconditions for the possible beginning of the fall.
The false-break-down is rather deep and it is hard to expect that the uptrend will continue.
The price goes back to the retest of the previously broken line and goes back to the channel. But - this return to the channel might just be a trap for additional liquidity by the big player.
But, if the price can hold above the channel support or the 1995 level, the rise will continue.



Strong support: lower boundary of the channel, the 1988 level.
Strong resistance: 2000, 2010.
On the daily chart, price forms a false breakout of the 1988 support level in a pin bar format.
We see a strong uptrend, but at the same time the price has a huge amount of liquidity below the 1988 level.
If price reverses down to retest the 1988 level, there is a high probability of a breakdown of support and a drop in price.

Regards to R. Linda!

20. Apr. 2023

Anmerkung

Very high probability for breaking 1988

There is a huge pool of liquidity below.

On the daily chart there is a very weak reaction to a false break of the 1988 level. Price is exerting pressure on support

21. Apr. 2023

Trade ist aktiv