Hi Traders! Gold bullish channel provides buy opportunity for us. A detailed analysis of this setup is as follows:
Gold Daily Chart:
On the daily chart the price is moving inside two channels (a big bullish channel and a small bearish channel). These channels are formed by the price reaching similar support and resistance zones and the price is respecting these two channels so far. The smaller channel’s lower trend line and the bigger channel’s lower trend line coincides on the same level thus forming a confluence zone for us. Currently the price is coming to this confluence zone. In addition to this we also have the horizontal support on the same area and a potential bullish divergence is forming at the moment. Once this bullish divergence completes itself, we may look for more bullish evidences and start looking for buys.
Invalidation: If the price breaks below the bottom of these channels then this setup is invalidated (false breaks are acceptable).
Note: It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this setup then you can use any setup and strategy that you have in your arsenal to look for bullish moves and join this buy trade.
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