GOLD, Trading Within Volatile Channel, Test Of Levels Remaining!

Hello, Traders Investors And Community, welcome to this analysis about the recent events, current price-formation and what we can expect from GOLD the next days and hours. As the stock-market marked some gains in the last weeks this was a crucial factor for GOLD to more show more sideways movement to bearish movement on the short-time-period as this is normally the case when the stock market is increasing in price but as the stock market begins to decline again due to possible upcoming corona-restrictions this can alter again in the near future, besides these fundamental factors there are some important technical signals I detected that can determine the meaningful outcomes of GOLD in destiny.

As you can examine when looking at my chart-markup you can elevate and see how GOLD has formed a huge major parallel channel where it is consolidating to the downside since the highs at 1770 established, for now, GOLD is holding above the 55- and 200-EMA you can look at in orange and darker red in the chart which currently serving as some support in the structure but that can change as GOLD has some major crucial resistance factors once at the upper boundary of the channel and secondly the resistance it established in this level, therefore, it should not be ignored that can possibly show a heavy breakdown to the downside with expanding volatility when the uptrend line it is currently still holding up confirms to the downside.

When this proper scenario plays out accordingly and we don't get other bullish signals which will invalidate it in the short-term the breakdown can be traded on the short-side with an immediate entry before the confirmation or entry after confirmation of the trendline to the downside which is an better option, in this case, traders should decide on individual risk-preference. After GOLD has confirmed this more likely scenario at the moment we have to elevate and contemplate how GOLD behaves in advance in the 1680 Fibonacci-support you can see in my chart, it is possible that it develops a bounce from that level to move higher and form a reversal when this does not establish with the needed strength in that level there is the possibility given that GOLD falls more when confirming below the support.

On the higher timeframes, we have an overall more bearish than the bullish picture for GOLD which can drag it to the bottom but because GOLD is the real money and can be used as a serious hedge when the stock-market bearishness increases again GOLD can be a solid source of fortune in the future when it stabilizes in advance. Especially in such volatile times when the world changes to a more and more terrain where fiat money is not the highest source of comfort the dynamic can shift to a more independent and substantial form of money-backing where people put their trust, because of this it has always been a hedge against stock-market and economy crashes and this dynamic is likely to confirm also in the upcoming days, weeks and years, therefore, it will be interesting how it's playing out in the time to come.

In this manner, thank you for watching support for more market insight, good day and all the best!
Behind every successful fortune, there is a successful market set up to take advantage of.

Information provided is only educational and should not be used to take action in the markets.