The market which was active last night saw an increase in the price to reach the level of 1780.00 also testing the small resistance area found last week.
From the chart shows the market is moving bullish trending on the H1 timeframe and the market reaction now shows a horizontal market movement taking place after yesterday’s rise.
So through this chart what is the potential that could happen to gold at the moment? In my opinion, there are 2 probabilities that can happen at this point. For certain reasons as follows:
Situation 1: The fixed price continues to rise to a higher level if it manages to break at the price of 1780.00 and there is a retracement at that price.
Situation 2: The price is moving horizontally and showing a downtrend tendency because the current price has a confluence on the past resistance area as well as the trendline that was tested yesterday. As well as at the current price there was a candlestick reversal in the last few hours.
So through these two situations, traders need to look more closely at the lower timeframe to make a trade as well as get the best space and opportunity to trade.
If looking for an opportunity to buy, the price of 1775.00- 1770.00 will be the nearest support level at this point.
If looking for an opportunity to sell it is better to wait for the price to make a breakout on the trendline area.
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