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Caution: US election is around the corner where we would expect much higher volatility happening in the market.
Gold trading plan: Golden Question – Is Gold’s corrective wave ending soon?????
As mentioned last week, we have indeed saw gold drifted downwards and it is likely that the drift would continue in the upcoming week as well. The updated support trend line is now around 1,83x range.
We can see that Gold is currently nearing the end of the Wave 5 (downwave) and in case it is supported, the bull trend would likely to resume.
MACD, RSI and PSAR are still pointing downwards where downward pressure is still present.
Zooming into the daily chart, we can see that is currently at Wave 5.4 (immediate corrective wave of a downward wave). As such, there may still be a small possibility of very small recovery in gold on Monday/Tuesday before a sudden impulsive drop towards 183x area).
4hrs MACD, RSI & PSAR are all in recovery mode, there is a possibility for it to go up more towards 1895 range to test resistance before going down.
However, in case if Gold break above the recovery trend (the 2 smaller orange uptrend line in the picture below), we may see more demand coming in and has a small possibility of invalidating the Wave 5.5.
(Such event may be possible especially volatility is high due to US elections – i.e. any news of stimulus would impact USD and Gold to a large extent).
In the event where 1870 is broken down, next few levels would be:
3. 183x (big trend support)
As no trading/investments are guarantee sure win, please do your own due diligence and always look at risk to reward and trade with guaranteed stop loss (private message me to know more).
Past article written on how to use guaranteed stop loss; do private message me in Telegram for me to refer you to IG.