Gold closed down 2 points on Wednesday, once again finding support at the confluence of moving averages and the inner Bollinger Band. While not moving lower than support, price stayed contained within Monday's candle and is setting up for a potential 'Rising Three Methods' pattern. This pattern starts with a long green body that is followed by three small body days, each fully contained within the range of the high and low of the first day. Then the fifth day closes at a new high. If this plays out, then Friday would be the day for price to hit the outer Bollinger Band which is now at 1267.30.
While the indicators are still green, the Heikin-Ashi candles are showing a potential end of the up move which you can see on the chart above. Certainly the Heikin-Ashi doji on Wednesday is not inspiring a lot of confidence for the bulls.
I recommend protecting your profits and tightening stops.
Disclaimer: This post is for educational purposes only. Trading is at your own risk.
I recommend protecting your profits and tightening stops.
Disclaimer: This post is for educational purposes only. Trading is at your own risk.
