All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
Let's take a quick look on Gold with an educational top down market analysis view. Firstly as always we observing the monthly bars chart. We can see a three month one time framing lower market and last month's low got taken out as well. Also, the market trading below the drawn balance area and testing a potential support area. So in this monthly bars perspective the market is more on the bearish side:
Also, with in this way drawn Price Retracement tool we have a potential support level here:
With the informations from the monthly chart let us moving forward to the next periodicity: the weekly bars chart. Last week closed strong in the potential support area. We are one-time-framing lower here as well. The current week is an inside week as the market did not took out last week's high or low so far. Drawn is also a bracket area but we broke that clearly two weeks ago.
Next one is the daily bars chart. Here we can identify a balance area and three inside days including the current one. We had a outside bar three days ago and this could be a first sign for a change.
Let's take also a look with installed Exponential Moving Averages (EMA). Firstly with the weekly bars chart. Short term trend with 5, 10, and 20 EMA is intact:
On the daily perspective the long term trend with 50, 100 and 200 EMA is intact. Currently the market battle around at 5EMA but finds resistance at the 10 EMA.
With the weekly VWAP and intra-day VWAP we could lean us on the value extremes as the Gold market looks very rotational currently. Let's careful observe a break out of the daily balance area, we'll see what happens then.
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