The most recent move on Gold saw a sharp drop that was quickly recovered, likely sweeping stops and trapping sellers before price aggressively reversed from the lower boundary of the projected channel. This is not a cause for concern; on the contrary, it could offer another opportunity to get involved.
That is because this type of drop and recovery is common in strong uptrends before bullish momentum resumes.
The market is likely in the early stages of a new impulsive leg to the upside right here.
We could either see a short-term consolidation or pullback toward the 4,330–4,300 support area before continuation, or Gold could simply push straight upwards. Given the current momentum, the latter remains entirely plausible.
My target will be around 4,600, near the upper boundary of the projected channel resistance.
In this context, the market remains clearly bullish. The most interesting aspect is the emotional flush during the latest drop, trapping sellers before potentially fueling another major leg higher.
That is because this type of drop and recovery is common in strong uptrends before bullish momentum resumes.
The market is likely in the early stages of a new impulsive leg to the upside right here.
We could either see a short-term consolidation or pullback toward the 4,330–4,300 support area before continuation, or Gold could simply push straight upwards. Given the current momentum, the latter remains entirely plausible.
My target will be around 4,600, near the upper boundary of the projected channel resistance.
In this context, the market remains clearly bullish. The most interesting aspect is the emotional flush during the latest drop, trapping sellers before potentially fueling another major leg higher.
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.