Today’s red candle does not sound any alarm yet. Most likely, gold is taking a pause in its short-term rally. Let’s explore the hypothesis from different angles.
The daily candle is not very bearish. Most likely it is a part of bigger combo that is being developed (such as Raising 3 Methods).
On the other hand, the price, while staying above 8 EMA, was rejected below 200 MA. Indicators point upwards and the odds are close to 50/50.
Tomorrow is the day of monthly candle and I am very curious to know the color and the exact shape of the perspective doji/hammer.
- Most likely tomorrow will be a horizontal day.
- A closure below $1804 would be a bearish alert.
- Gold is expected to continue its short-term rally for a few weeks.
- From the long-term perspective, gold is under significant bearish pressure on the quarterly/monthly frames and the decision about further direction is expected by the end of September/Q3.
A more detailed forecast and supporting charts were covered in the Weekly Analysis that is available in full to the subscribers.
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