Gold has been benefiting from this most recent bout of ‘risk off’ activity. Price action made a triangle breakout on the 4hr chart but is currently resting at the key S/R level of $1,100 and, whilst this is one level to watch, there are a couple of others.
This is my first update for the day as I’ve had some medical issues with my son. All good there though and his head injury hasn’t triggered a brain bleed.
Gold 4hr: price broke up and out of a 4hr triangle pattern with some added uptick in momentum to confirm this move. The $1,100 remains a key S/R level though and price is resting near there as I type.
Gold 4hr Cloud: price is above the 4hr Cloud supporting bullish continuation.
Gold daily Cloud: price is stuck WITHIN the daily Cloud however which suggests further choppiness. Thus, for any Gold Bulls out there I’d be waiting for any close and hold above this daily Cloud. The top of this Cloud is currently near the $1,120 level.
Gold weekly: regular readers will know that I have been tracking a potential bullish-reversal descending wedge pattern here for some time. Note where the top trend line of this wedge pattern is though and you’ll see its just above the $1,120 region. Confluence as this is near the top of the daily Cloud!! Thus, any close and hold above the top trend line of the wedge pattern and the daily Cloud would help to support a bullish bias. It’s no guarantee but…it’s pretty helpful in identifying the next potential move.
USDX daily: the US$ impacts Gold as well as general ‘flight to safety activity. The US$ remains range bound within a daily triangle and still under the key 100 resistance level for now. A bullish breakout here would put pressure on Gold, however, any bearish move would help to support the yellow metal.
Summary: watch Gold for any close and hold above the daily Ichimoku Cloud and the weekly-chart based wedge trend line to gauge bullish sentiment on Gold. Conversely, a bearish bias would be supported by a move back below the daily and 4hr Cloud and a break below the bottom wedge trend line.
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