Potential double bottom in progress below $ 1’800 ?
The level of $ 1’780 is very important as it could be seen in the past and more over the thickness of the weekly clouds is currently very thin = very fragile.
A failure to recover sustainably above the $ 1’800 area and close above it on a weekly basis would be the first signal calling for further downside towards $1’750 and ahead of $ 1’723.
Below there is the former double bottom @ $ 1’673.30.
Still in a downtrend with its resistance line currently @ $1’812, which is slightly below the Tenkan-Sen @ $ 1’816 and which should be seen as the first significant level to break on a daily closing level in order to neutralise this ongoing downtrend.
The cluster of MA21 and Kijun-Sen is @ ($1’833 – $ 1’836).
Friday’s price action triggered an HAMMER pattern !
On the downside, as for the weekly picture, a failure to hold and close on a daily basis above $ 1’800 would weigh on Gold and would open the door for lower levels as above mentioned.
4 HOURS (H4)
Nice recovery in progress triggered on Friday by a HAMMER ! So far, the rally has been rejected by the MA 21 @ $1’813.20 and this level is the last resistance before the H4 clouds resistance area which is higher ($1’832-$1’838). By the way, the 61.8% Fib ret of the $1’861.50-$1’783. 40 recent downside move is @ $1’831.70).
On the downside, in this 4 hours time frame, the Tenkan-Sen or Conversion line is @ $ 1’805 and should be seen as the first significant support level in H4.
1 HOUR (H1)
A successful upside breakout of the clouds would put the focus on levels above previously mentioned in H4 which also coincides with former highs in this hourly time frame.
Have a nice Sunday.
IRONMAN8848 – Jean-Pierre Burki
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