Gold Forecast Follow Up And Update

Hi Traders! Gold forecast follow up and update is here. On February 24th I shared this “Gold Forecast And Technical Analysis” post in my blog. In this post, let’s do a recap of this setup and see how it has developed now. If you would like to learn more about the way we trade and the technical analysis we use then check out the Traders Academy Club. Spoiler alert – free memberships are available!

My Idea

On the H1 chart, we had a strong bullish move and it looks like a pullback is happening now in the form of double wave down. Also, we had a strong resistance zone that has formed, the price which was moving higher has broken above this strong resistance zone and is holding above it. Currently, this strong resistance zone is acting as a strong support zone for us. The price has currently reached this strong support zone, so until this strong support zone holds my view remains bullish here and I expect the price to move higher further.

 

Gold H1(1 Hour) Chart Current Scenario

Based on the above mentioned analysis my view was bullish here and until the strong support zone holds I was expecting the price to move higher further. The price action didn’t follow my analysis here and this idea failed. After the strong bullish move we had a pullback in the form of double wave down and the price reached the strong support zone, reacted from this zone and it moved a bit higher. But then the price moved lower and we got a valid breakout below the strong support zone thus invalidating the bullish view here.

The market didn’t provide us any fact supporting the bullish view here, there were no bullish divergence between the two waves. The price which bounced higher from the support zone didn’t break above the most recent downtrend line as well. Then as you can see in the image above how the price moved lower further and broke below the strong support zone after that. This is why we should always trade based on the facts and hints provided by the market and take the right actions according to that. Also, you should keep in mind that losses are part of trading we can’t expect every trade to go as per our plan and provide us profits. In trading we can’t avoid losses but in order to be successful in trading we should know how to cut losses early and how to manage the trade when the price goes in the opposite direction.

Note: You can watch my webinar on how to cut losses early here

In order to learn about this and much more, I invite you to join the Traders Academy Club and you can also get access to our complete watch list and trade report. 

This is how the report looks like. A table with the hottest market opportunities, screenshot behind every pair and time frame (anything that is in blue inside the table is clickable and leads to a screenshot) + a summary in text format, kind of highlights. And of course, Live Market Analysis every single day.

 

If you have any further questions, don’t hesitate to drop a comment below!

 

Happy Trading!

Yordan Kuzmanov
Chief Trader at the Traders Academy Club