Gold is consolidating on 4H inside a Triangle pattern (RSI = 52.231, ADX = 19.396, Highs/Lows = 0.0000). This gives the impression that the strong bull run of June may have come to an end as 1D has also turned neutral (ADX = 16.817, Williams = -51.730, CCI = 11.7045, Highs/Lows = 0.0000).
What's very interesting is that the current price action on 4H is replicating the 1D candle formation in 2016. The share a handful of similarities such as the strong rebound on a sideways bottom trade (Rectangle at the base of the formation), the consolidation half way through the bull run (eclipse shape) and finally the current Descending Triangle at the top. In 2016 a Death Cross followed that essentially confirmed the aggressive decline towards the 0.786 Fibonacci.
Even though the time frames are different (4H to 1D) the market reaction is identical indicating high probability of also replicating the decline that followed in 2016. Based on this we are on the sell side expecting again a decline near the 0.786 Fibonacci retracement level. That puts our TP at 1,310.
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What's very interesting is that the current price action on 4H is replicating the 1D candle formation in 2016. The share a handful of similarities such as the strong rebound on a sideways bottom trade (Rectangle at the base of the formation), the consolidation half way through the bull run (eclipse shape) and finally the current Descending Triangle at the top. In 2016 a Death Cross followed that essentially confirmed the aggressive decline towards the 0.786 Fibonacci.
Even though the time frames are different (4H to 1D) the market reaction is identical indicating high probability of also replicating the decline that followed in 2016. Based on this we are on the sell side expecting again a decline near the 0.786 Fibonacci retracement level. That puts our TP at 1,310.
** If you like our free content follow our profile (www.tradingview.com/u/InvestingScope) to get more daily ideas. **
Comments and likes are greatly appreciated.
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Over 65% accuracy on Private Signals Channel.
Over 15% return monthly on our Account Management Plan.
Account RECOVERY services.
Free Channel: t.me/investingscopeofficial