Gold went on a bearish ride till 1782. This area was a major daily support level. To break this, market needed to gather liquidity and started to pave up.  After testing the 1809 price point, slightly below the resistance level, market started to tank back towards the 1700 range. At the price of 1794, we have a support area which is the determining factor of the trend continuing bullish or breaking towards the bearish sentiment. This support will determine the fact. Regardless, we are going to go long at this support area.

At the support level, we have the confluence of the retracement level of 61.8%. This will act as an added factor for the market.

The only trendline we have is the ascending trendline, which might be broken or rejected once market reaches the support. This trendline needs to be respected in order for the market to continue up. If its breached, we will reevaluate our analysis towards the bearish side.

Both the EMA's are in a bearish sentiment, at the verge of forming the bearish death cross. If the EMA's fail to form the death cross, we will see the bullish momentum forming. If it does form the death cross, we will need to re asses the bullish position.

Both the oscillators are in a bullish region, with RSI being at 51 and CCI being at 42. RSI needs to fall into the over sold bearish region, where a potential bullish divergence would be formed. On the other hand, CCI needs to fall into the neutralized levels. At those levels, we might align with the other factors of support and trendline and go bullish.

Gold is a good setup at 1794, potentially targeting the 1820 level. If market breaks the support level on H4, we will take a small loss and re analyze the pair.

Buying Gold at 1794

Feb 01 2022

Take Profit +1.14%

Holding time 19hr

1791.79

Entry price

1812.27

Take profit price

1