Originally posted by Zestfulmocha
Hourly highs are consistent with that channel but lows are creeping up to create consecutive rising wedges?
The longer view looks okay, but it wouldn't surprise me if it bounces again to test longer term support around 1220 - it all revolves around that ~1240 zone I think (which is probably why it saw a hard break overnight before coming back down? Lots of eyes on Gold I assume in the current market). If it bounces it'll be the third failed test, if it breaks it'll need to come back and re-rest it as support before confirming the trend continuation?
Now that I've looked at the chart, on longer time frames I wouldn't be going long.
1. There's divergence.
2. It's still range bound and at the top of that range.
3. There's quite a few upper wicks signalling bears coming in.
4. Daily is at 200ma (not shown on this chart).
It's actually looking like a good short potential for someone like me, HOWEVER, the Fed (again) slightly altered their statements and the yield curve has also inverted (which is a tell-tale sign of an upcoming recession), not to mention there's potentially going to be a death cross on the stock market (another sign of long-term bear trend). Gold tends to run bullish in an economic downturn so it potentially could break upward as US awakens and starts panicking.
Again, I don't trade it, so good luck!
