The Gold price has been moving in a downtrend after setting an ATH (All-Time-High) of $2075/oz in August last year. Currently, it is at the level of the minimum from February this year.
- gold at an important support level
- inside bar on the H4 chart
- today small ADP payrolls at 14:15
The declines were several times interrupted by upward corrections creating bullish flag pattern on the chart. In March this year, a double bottom formation appeared.
The price after breaking the neck line (1756) started to rise and overcame the resistance of the flag, but already in June again declines occurred, which reached the neck line of the mentioned double bottom formation yesterday.
On the H4 chart we notice that an inside bar formation has appeared. The price is currently inside the formation. Today’s data from the labour market in the USA, which will appear at 14:15 (ADP) may influence the price of gold and lead to the breakout from this formation.
It is therefore worth watching the reaction to the data and join the market in case of a breakout. If the breakout occurs upwards and MACD starts rising – it would be a signal that the market returns to growth.
A breakout downwards could bring the price to the nearest demand zone of 1727 USD/oz. Should today’s data not increase volatility on the markets, let us remember about the “dish of the week” – payrolls, traditionally published on the first Friday of every month at 14:30.
As a curiosity, I attach a summary of how the prices of raw materials have changed over the year… isn’t surprising the low position of… gold?
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ongoing analysis https://t.me/TradewithDargo
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