GOLD - Higher Timeframe Overview ✨

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This may be against the trend or as my friend says "going against a tsunami" but there's technical evidence to suggest that we may see a drop in Gold for the next couple of months.

On the monthly timeframe we appear to be in wave 3 - which is made out of 5 impulsive subwaves. See below:

Wave 2 and Wave 4 are ABC corrective waves and on the weekly timeframe we can see that we are still within the ABC corrective parameters of wave 4 and awaiting the final C wave, which is a move down. We have the FED rate decision on March 16th which could really shake the market. We're expecting USD strength during FED and Gold is weighted against the USD and is inversely correlated. If USD goes up, GOLD should go down... eventually.

It is important that we do NOT jump in to shorting Gold early without seeing either of the following:
- Lack of buyers
- Any sellers
At the moment there are plenty of buyers of Gold due to the war in Ukraine - Gold is acting as a safe haven. Also, there does not seem to be any sellers entering the market... yet.

The key event to watch is the FED rate decision on March 16th. We could potentially see the start of the bearish wave C during the event. Once we see the first move down, we can prepare ourselves for an entry once we see a correction. See below:

It's better to wait for confirmation rather than try and call the tops and bottoms of a move. Plenty of money to be made after seeing the confirmation and it's less likely you'll be riding out drawdown.

Would love to hear your thoughts - leave your comments below.

Goodluck and as always, trade safe!

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GOLD Daily -