Hi Traders! Gold forecast update and follow up is here. On February 6th 2020 I shared with you this “Technical Analysis – Gold Forecast” we performed the multi-timeframe technical analysis on Gold to find the possible trade opportunities. The platform in which we performed this analysis is on the MetaTrader4(MT4). You can find some useful tips and hacks about the MT4 platform here. First lets see how the sell idea worked perfectly as per our plan and then we will discuss about the current scenario.
Gold D1(Daily) Chart Analysis
Bullish Trend Pattern, Bearish Divergence
Gold H4 (4 Hours) Chart Analysis
Bearish Channel breakout, Stochastic Oscillator has reached its extreme.
Gold H1 (1 Hour) Chart Analysis
Bearish Trend Pattern, Two Important Resistance Zones, Volumes Indicator, Stochastic Oscillator has reached its extreme.
Gold Sell Trade Is Providing Us Wonderful Profits
Based on the above mentioned technical analysis my view in Gold was bearish until the two important resistance zones in the H1 chart holds. The price moved higher and reached the second resistance zone, respected it and is currently moving lower, exactly as per our plan. We have collected good profits with this trade so far.
Gold Current Scenario And Forecast
Based on the current scenario my view still remains bearish in the short term and we may expect further continuation lower. But pay attention to the downtrend line shown in the screenshot below, because we had a triple wave to the upside followed by two waves to the downside so currently if the price moved higher, breaks and holds above this dynamic resistance then this bearish view will be invalidated (false breaks can be neglected).
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this sell setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.
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Yours to success,