Gold to breakout this week?
Can we see gold accumulate orders to buy or possible redistribution from the distribution above that could push price down lower?
Gold price has been trading in a range between 1798 as the upper range and 1760 as the lower range and been ranging since 17 June 2021.
We have see the US economy recover this month pushing the dollar index higher with great gains, unemployment fell, production growth is strong but supply chains has been bottlenecking. One thing that has been keeping investors on there toes is inflation rising high in the background.
Could we see a breakout this week with FOMC minutes being released on Wednesday 7th July along with the Fed monetary policy report?
Looking at gold from a weekly view we can see a break in the down trend order flow and recently price rejected from the 618 fib level, I am very sceptical about price right now as a possibility that there could be a play at sweeping the lows below.
I will be watching the lower time frame to see the move play out.
Looking at the daily view there was an accumulation at the low of the charts which accumulated orders to buy gold, we have see a backing up action to the level it broke out, could we see a confirmation of the change of behaviour at this level and start making new higher highs?
Gold on the 4 hour chart, we saw a great distribution around the 1919 price level and fell 7.5% to then now pause, or could this whole area be one big reaccumulation from the low of 1673?
Looking at gold on the 1 hour timeframe we can start looking into fractal levels of Wyckoff to pin point turning points and potential entries we can get into, did we see a shakeout on gold last week setting us up for a nice break of the top range making a sign of strength to start rallying higher?
A daily gold renko chart showing us an ease of sells in the down move which could fall short the selling position in gold, one I am currently watching closely.
Looking at the COT reports this week gold is still high in the buyers range as demand is still strong with investors and price falling only helps investors buy more at a lower price range.
Gold may be volatile this week with news events coming up for the USD so please trade with caution and as always only risk 1% on your trades.
Note: This is not financial advice