- December 1, 2020
- Posted by: Tradingshot Articles
- Category: Commodities
Yesterday I posted a long-term projection on Gold, which had to do with the importance of holding the 1W MA50. And so far buyers have defended this long-term Support:
Today’s rise has been strong, indicating a powerful buying accumulation but that doesn’t mean that shorter-term traders shouldn’t be on their toes. The reason is that the price is about to hit the 4H MA50 (blue trend-line on your chart). That is a very important level as (as shown on the chart), it has been the Resistance since the November 09 “Pfizer fall”. In fact it had rejected the price multiple times from November 13 to 23.
There are strong indications that this time the 4H MA50 can break, as the RSI has broken above both Resistances (its Lower Highs and its Resistance) and the MACD is on the strongest rise in the past 2 months.
So if the 4H MA50 breaks, traders still need to keep a low short-term target as the 4H pattern could be a Channel Down (see how harmonically the middle of the Channel divides the trading zones). And that Channel has a potential Lower High around $1855. After that we need to wait and see how the price will react near the 4H MA200 (orange trend-line), which if broken basically starts the 2nd (and more aggressive) Bull Phase on a 1D time-frame.
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