Hi folks. Especially investing.com forum members. For the last week with articles and with forum posts in investing.com, nearly all our calls succeeded in GOLD. This was because of technical analysis tough, not a magic for sure. But as i always say, this is just an analysis and we are not fortune tellers. Analysis may always fail and because of that, we use stop loss in every trade. I recommend to everyone to be able to study charts, be aware of trends, moving averages and also keep eyes on the news. To get the victory, we should have the right weapons.
Last week, GOLD moved in a pattern which i tried to explain below.
Most of our calls (some from 4Hrs, some from 30 mins period) were made looking into this chart. In the first look it may seem a little bit confusing. But as i said earlier before, usually i only use trend lines, moving averages and support-resistance levels in my analysis. This time fibonacci retracements surprisingly was active in GOLD actions.
First of all lets talk about symmetrical triangle formation which i showed in grey inside the chart. In this formation, during an up or down trend, price reversals get stucked inside a triangle pattern that narrows on both sides symmetrically. There are some other triangle patterns but in this one, the direction of the price cannot be determined. When it breaks out of the triangle it may be down or up. We cannot get it before looking into this pattern only. Also short term triangle patterns are not reliable, keep this in mind too.
So wee need to analyse other data. Lets talk about the others. For some time, 96 Hrs MA has been a resistance level to the price. Again the price is below the MA, so first of all, to be in up trend we got to get over it. Also fibo retracement lines worked for a while and may still be working in the future. According to fibo we are again a little bit below a resistance level. So 2x issues we have to solve to be up.
On the other hand from 1198, GOLD dropped down to 1147 quickly, but then since 11th of march, started to move between 1166 and 1147. To stay still in down trend, we have to get below 1147. After than we may test 1131. So this is an issue to be solved before going down.
As a result 2-1 down trend wins. But to be more clear, if i were you i would wait Mondays actions. Cos i expect a movement between 1159-1153 on monday start, during the day leaving the triangle is expected. That time we will decide where to go.
Pivot : 1166.50
Support : 1157.00 – 1147.00-1139.00-1131.00
Resistance : 1161.60-1166.50