Gold: A Bearish correction.

Jan 5, 2023

Hello TradingView! This is going to be my first ever analisis I publish, so please, keep this in mind while you are executing your trade. This is not financial advice.

We have seen an amazing bull run in Gold these past weeks ever since the Dollar (DXY) broke down. Now that the price is consolidating in an ascending wedge, while the DXY is correcting, some bearish signals are starting to form:

• Divergence on the daily timeframe on the MACD and RSI.
  
• While the ascending wedge signals contraction, which in my opinion will lead to a pullback to around the 1700-1750 area, where I predict the resumption of the bullish momentum, but then this will be another idea to publish.
  
• Fake breakout on the upper side of the wedge. Being that there are many contrarian signals, I do not believe Gold has the momentum to continue upwards for the time being. It is time to cool off and wait for a bullish entry.
  

For this idea we are looking for signal in the weekly candle close, I suggest looking for an entry around the 1850 area, with a stop loss around 1950 and profit taking around our target 1750.

Thanks for reading and happy trading! I will be updating this idea as the weeks progress.

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