For sure, when Gold broke the ascending trend line (jan - today) and the support couldn´t stop the price, I thought Gold would be falling deeper.
But now one can analyse these last movements as false breakouts to the bottom (bear trap).
Instead of continuing the drop, the Goldprice turned and has begun to rise.
The support (rectangle) has been tested several times and even if one could have had the opinion it would not be strong enough, it stopped the negative trend. Now, this support can be considered to be very strong!
The goldprice shall now break the resistance (last trend line and support), even leaving the wedge to the top and then rising to the upper limit of the older and bigger triangle (coming from jul ´15). The alpha between up and down of the small wedge is about 5.2% - and this is quiet also the alpha between the actual price and the upper limit.
The indicators RSI and MACD confirm the bullish trend. RSI just has broken the falling trend line up, MACD has triggered signal line up (but still in negative zone).
There is still the risk, that the price falls back, then crosses the support-zone and falls much deeper. Because we have a chart pattern "3 descending peaks" and the neckline still has value.
In my opinion there are more upside chances, than downside risks. This is no trading advice.
But now one can analyse these last movements as false breakouts to the bottom (bear trap).
Instead of continuing the drop, the Goldprice turned and has begun to rise.
The support (rectangle) has been tested several times and even if one could have had the opinion it would not be strong enough, it stopped the negative trend. Now, this support can be considered to be very strong!
The goldprice shall now break the resistance (last trend line and support), even leaving the wedge to the top and then rising to the upper limit of the older and bigger triangle (coming from jul ´15). The alpha between up and down of the small wedge is about 5.2% - and this is quiet also the alpha between the actual price and the upper limit.
The indicators RSI and MACD confirm the bullish trend. RSI just has broken the falling trend line up, MACD has triggered signal line up (but still in negative zone).
There is still the risk, that the price falls back, then crosses the support-zone and falls much deeper. Because we have a chart pattern "3 descending peaks" and the neckline still has value.
In my opinion there are more upside chances, than downside risks. This is no trading advice.