GOLD\XAUUSD (Y20.P3.E4).Correction in play

٢١ أغسطس ٢٠٢٠

Hi All,

Looking at the chart from a channel perspective, one can see that gold price action went parabolic and doing so is over extended.
One will then expect sooner or later for it to return to the average, in this case, towards the mean of the channel.


OBSERVATION:
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> The big candle drop towards the alt time high is now to be tested as support.
> This has confluence with both the channel and the fib level\s.
> Looking at the weekly indicators, we can see the orange energy below 50%, showing downward pressure now.
> We have the green rsi cross over the red, another downward pressure indicator.
> Since both RSI's are above 50 or 60%, we know at this time, that the pullback will not so deep, at this point.
> The Stoch. also showing a cross over the signals for a downward motion.

THOUGHTS:
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> Price will likely move towards the 21, 34, (black ribbon) or the 50 EMA, which are all within the channel, 1st deviation.
> Along with the fib. retracement, its my opinion we will make a small dip below the support line touching one of the moving averages.
> It is also possible that the price action will stay on top of the 1st channel deviation.

For now, I have price to come down to 1880 to 1950.


Please give me a like or tick for this post.


Regards,
S.Sari

WEEKLY CHART, close up


Note how the 21\34 or 50 ema has a role to play


A possible formation

٢٦ أغسطس ٢٠٢٠

تم فتح الصفقة

Price has been tested at the 0.5 level as per chart and buyers were there.
The downward pressure is still present and its likely to retest this level.
If it holds, price will make newer highs