JICPT| Stronger headline inflation opens up room for gold!

Hello everyone. After consolidating around $1760 for a few days, gold finally broke my rebound target of $1786 with stronger headline inflation released earlier today.

On the weekly chart, we can see gold is approaching the downtrend line which is part of descending triangle pattern. I guess price would face strong selling pressure around $1808.

On the daily chart, we can also note that $1808 is nearest pivot high aligned with the weekly structure mentioned above. If $1808 can be firmly conquered, gold will challenge the $1835 level for the fourth time.

So, in a nutshell, I set an alert on $1808 for potential bearish pattern setup. I don't think it will easily pass the level because of the pattern on the higher timeframe(weekly). For whatever reason it passes $1808, I will look for bullish setup with target 1 near $1835.

What do you think of my rough trading plan? Give me a like if you're with me.

Kommentera:

We can see from the daily chart that price have a quick retest of the rebound target. Considering today's Friday, likelihood of forming a daily inside bar is very high.

Kommentera:

It failed to challenge level of $1800. With a rebound of US 10Y yield, gold plummeted. It's likely to retest previous zone of $1750. Let's see.