Yesterday’s trading session was closed by bullish pinbar from EMA8, which could be regarded a signal of gold market growth extension except for two things.
First one, upswing is fully completed and signal was received at its peak. It quite can be a false setup.
The second is that right now the price resides inside the strong reversal zone 1737.39-1746.27, which is very tough to overcome.
Thus despite some domination of bulls, scenario of correction appears more likely (blue arrow).
But of course we need to take into account a scenario with break of resistance 1746.27 that would definitely drive to upward movement to the area of recent high (1764.65, black arrow).
Local structure has a reversal pattern “double high” that right now is leading to development of downswing. Potential of downward pullback is significant - up to the closest structure’s low (1726.62).
Well, let’s see how buyers will act after ending of this correction. We could say that mid-term uptrend is still valid in case of getting solid buy signals at this level.
Decline in direction 1726.62 and then upward reversal.
Shorts in direction 1726.62.
Seeking local buy signals at 1726.62.
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