The current gold situation is more indicative of a downtrend reaction after the price in the last few days failed to pass the resistance on the H4 timeframe. And this has been going on for 3 days in a row without any retracement.
From the market price trend showing a downtrend reaction, what is the potential that could happen today. Will the market make a retracement? Or even continue the decline at a lower level? Or a horizontal movement will occur.
Through the current chart, the decline is still dominating the market price. I see from this chart there are some 3 possible probabilities. First, the price continued to decline after the rejection price at 1790.00 and there was no retracement until the market was active later.
Second, the price made a horizontal move to yesterday’s lowest price before a clear setup is seen and a potential downside will occur later in the night.
Third, the price performs a retracement in the lowest price area yesterday, or higher before a larger decline can occur.
All three of these probabilities can occur during the morning and evening sessions as at this point the market is seen to be still inactive but the trend is seen now. Trading like this can be accompanied by a good risk reward between 1: 1.5 / 1: 2 to generate long -term profits.
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