Tue. Oct 19th, 2021

Updating and monitoring the gold forecast

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Hello traders! The gold forecast update and tracking is already here. On August 19 I shared this “Gold forecast and technical analysis”Post to our blog. In this post, we summarize this configuration and see how it has developed now. For more information on our way of trading and the technical analysis we use, see the page Traders Academy Club. Spoiler alert: There are free subscriptions.

My idea

In Chart H4, we have a strong resistance zone that has formed and the rising price is currently approaching this strong resistance zone. In addition, the 200 moving averages match at the same level, making this area a key resistance area for us. In addition to this, we have a hidden bearish divergence that has formed between the first high that formed in 1831.70 and the second high that formed in 1782.51, followed by a continued bearish divergence based on the MACD indicator. We can consider them as bearish pressure tests and, moreover, there are currently no signs to oppose this bearish view. So in my POV, based on all of this, there are two possible scenarios here. The price may drop directly from the current zone or alternatively the price may generate a higher momentum, reach key resistance and then bounce lower from that zone. Either way, my vision remains bearish until the key resistance zone remains.
Updating and monitoring the gold forecast

Golden H4 chart (4 hours) Current scenario

At Gold, my point of view was bearish and I expected the price to go down even further under two possible scenarios. The price action followed my analysis and moved according to scenario 2. The price created another boost and reached the strong resistance zone, we also had a bearish divergence based on the MACD indicator which we can consider the bearish view as a fact provided by market support. Then, the price fell from the strong resistance zone and so far has given a magnificent measure to the downside.
Updating and monitoring the gold forecastIn the M15 chart, the market provided us with several facts that supported the bearish view. The rising price created a bearish divergence between the first high formed at 1806.39 and the second high formed at 1809.40 based on the MACD indicator. Then the price fell and fell below the most recent uptrend line, we can consider them as facts provided by the market that supports the bearish view and there are no signs against this bearish view either. . Then, as you can see in the image below, how the price went down even more and was a magnificent downward measure.

(Note: here you can learn about Killer Forex’s “Double Trend Principle” strategy)
Updating and monitoring the gold forecast
So traders, that’s why I wanted to show you this example to help you understand the importance of following the facts. The facts supported the bearish view here and there were no signs against it. When the events happen as we expected, you will be able to see how the price moved perfectly according to plan. Because this is the kind of guidance that the market provides us most of the time and it is our obligation as traders to be able to hear these things that the market tells us and we should try to do the right actions.

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Vladimir Ribakov
Certified financial technician

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