GOLD had a sharp sell off like equities in the 1st week of March due to Central Banks across the globe pumping liquidity and reducing rates. Besides the domino principle of one pulling the other (losses in equities globally being cleared via unwinding of long gold positions) as one asset manages the other in a systematic risk environment.
Current set up suggest $1675 where it would complete its minimum Bullish Dragon (trigger - hourly close above $1630). Only if it sustains above that $1800 is the next level with some resistance near $1735. Else a dip till $1575 before it attempts another up move.
From a medium to long term prospective this could be the last leg of the rally from 2016, post this Gold could start a fresh downside cycle.
Current set up suggest $1675 where it would complete its minimum Bullish Dragon (trigger - hourly close above $1630). Only if it sustains above that $1800 is the next level with some resistance near $1735. Else a dip till $1575 before it attempts another up move.
From a medium to long term prospective this could be the last leg of the rally from 2016, post this Gold could start a fresh downside cycle.
Comment:
Perfect reversal from $1575. Now as long as it sustains above $1620 (closing basis) it will likely test the Dragon target(s).
Comment:
1st level achieved at $1675
Comment:
Heading towards 2nd Dragon level $1800 now that the minor resistance at $1735 has been taken out
Comment:
It is showing signs of reversal from a Bearish Alt Bat formed at $1735. If it sustains below $1705 it could retest 1680-1640
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