Gold markets got shaken up today and it just seems like the beginning of a slightly lower move in this market.
Watching this futures market, we saw a recent low almost get tested at the $1,885 area today on a HUGE wick and got absorbed by buyers. That doesn't mean that this downside is over and done with and we can see gold back into the $2,000 area.
There is a huge descending triangle that is shaping up, lower highs, and equal lows. This means that the sell-side is holding out whatever buyers are trying to get into the market. The buy-side needed to see higher highs break and push to the upside rather than just holding out the support.
Meaning from here we had a huge support level wick that formed a month or so ago and touched the $1,875. Today's recent price action touched $1,885 so slightly higher.
There are two things that we need to see for a deeper pullback:
1. Break of the $1,875 level
2. Close under $1,900.
From here there are 2 immediate downside targets.
The first is at $1,810 because of the large volume profile stack the most immediate "noise" level of support that is under $1,900. The second is at $1,760 where the start of the next consolidation level is, this is where the cluster of support starts to form and should hold temporarily at least before we see a push back to $2,000. Gold moves really well into ranges before making a strong move to either end.
There is key resistance to note as well. The first area is $1,940 the prior broken low, the next $1,965 or so where the descending triangle starts to shape out.
This trade idea is for educational purposes only, should not be taken as investment or trading advice.
Watching this futures market, we saw a recent low almost get tested at the $1,885 area today on a HUGE wick and got absorbed by buyers. That doesn't mean that this downside is over and done with and we can see gold back into the $2,000 area.
There is a huge descending triangle that is shaping up, lower highs, and equal lows. This means that the sell-side is holding out whatever buyers are trying to get into the market. The buy-side needed to see higher highs break and push to the upside rather than just holding out the support.
Meaning from here we had a huge support level wick that formed a month or so ago and touched the $1,875. Today's recent price action touched $1,885 so slightly higher.
There are two things that we need to see for a deeper pullback:
1. Break of the $1,875 level
2. Close under $1,900.
From here there are 2 immediate downside targets.
The first is at $1,810 because of the large volume profile stack the most immediate "noise" level of support that is under $1,900. The second is at $1,760 where the start of the next consolidation level is, this is where the cluster of support starts to form and should hold temporarily at least before we see a push back to $2,000. Gold moves really well into ranges before making a strong move to either end.
There is key resistance to note as well. The first area is $1,940 the prior broken low, the next $1,965 or so where the descending triangle starts to shape out.
This trade idea is for educational purposes only, should not be taken as investment or trading advice.
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