Gold is following the channels down, mostly obeying the middle green channel but spending some time also in the red channel above it. Gold has during its descent made only few peaks to the outer grey and turquoise channels.
Intresting to note that during this correction Gold’s price action is performing the second time the same pattern - first testing the lower boundary of the lower turquoise channel and then heading all the way up to the upper grey channel. Last time after testing the upper boundary of the grey channel the price broke down quite violently.
It could do the same this time. The RSI has still some room to grow to the maximum value it has had during the downtrend, some 61,5. If Gold is about to test the trendline and the strong support of 1890+, there could be a strong rejection and steep decline in the price. If however, the price breaks above the resistance, naturally the uptrend most likely continues. Make sure to follow the price action carefully and take into account that there might be a fakeout. And most importantly, DYOR.
Trade safe and take care.
Cheers Whoop
Intresting to note that during this correction Gold’s price action is performing the second time the same pattern - first testing the lower boundary of the lower turquoise channel and then heading all the way up to the upper grey channel. Last time after testing the upper boundary of the grey channel the price broke down quite violently.
It could do the same this time. The RSI has still some room to grow to the maximum value it has had during the downtrend, some 61,5. If Gold is about to test the trendline and the strong support of 1890+, there could be a strong rejection and steep decline in the price. If however, the price breaks above the resistance, naturally the uptrend most likely continues. Make sure to follow the price action carefully and take into account that there might be a fakeout. And most importantly, DYOR.
Trade safe and take care.
Cheers Whoop