I really like the reaction of gold on a major blue resistance cluster based on a horizontal daily structure and a falling trend line. With bearish engulfing candle formation on a daily, chances are high that the price will turn bearish next week.
Though, signs of weakness make me reassess the initial goal. 1806 - 1810 is the closest minor support cluster that I would consider for the first goal and 1765 - 1780 as the second.
I will be bullish biased in case of a daily violation of the underlined blue zone.
You missed out an important Fib which gold managed to bounce off twice and that's the 0.382 area, looking at COT and massive surge in NET Long positions, gold is going to sky rocket up next week, there is no more momentum in the downside, as you can see by the two latest candles. Might reach at best your TP1 to stop out retail traders going long and placing their stop loss there and then I expect the gold prices to go up significantly.
VasilyTrader
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@Matl101, good outlook!
popcorn121
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News about pfizer will initiate broking fib 0.382 , soon on TP2
TradeXMBL
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@popcorn121, no. That stream of selling because of vaccines is long gone, fiscal stimulus is coming as US Congress threatened to shutdown if Americans do not receive $1,200 within a week. Besides Vaccine affects US Dollar as it is a safe haven currency, so gold will be at worst range bound, so weak dollar will protect the gold from free falling
VasilyTrader
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What do you think will happen with gold next week?
You missed out an important Fib which gold managed to bounce off twice and that's the 0.382 area, looking at COT and massive surge in NET Long positions, gold is going to sky rocket up next week, there is no more momentum in the downside, as you can see by the two latest candles. Might reach at best your TP1 to stop out retail traders going long and placing their stop loss there and then I expect the gold prices to go up significantly.