At the beginning of January, we saw that the gold price has broken above a 4-month falling channel.
After which, the price pulled back strongly and continued to find support at 1820 which has lasted for the past 2 months.
In the midst of it, an inverse HnS was formed last week and the market closed with a bullish weekly candle.
If the price were to fulfil this pattern and climbs, it will be the second breakout of the 4-month falling channel and could possibly signify the end of consolidation and the beginning of a new trend.
While nothing is certain, the current market condition does favour a gold long with a very rewardable risk-reward ratio.
This week, we shall look for buying opportunity as long as the price stays supported above 1830, until it reaches the supply zone at 1900, and hopefully it will retest the key resistance once again at 1956.
Otherwise, we could see the gold falling all the way back to the previous support at 1770.
After which, the price pulled back strongly and continued to find support at 1820 which has lasted for the past 2 months.
In the midst of it, an inverse HnS was formed last week and the market closed with a bullish weekly candle.
If the price were to fulfil this pattern and climbs, it will be the second breakout of the 4-month falling channel and could possibly signify the end of consolidation and the beginning of a new trend.
While nothing is certain, the current market condition does favour a gold long with a very rewardable risk-reward ratio.
This week, we shall look for buying opportunity as long as the price stays supported above 1830, until it reaches the supply zone at 1900, and hopefully it will retest the key resistance once again at 1956.
Otherwise, we could see the gold falling all the way back to the previous support at 1770.