Good Afternoon Traders!
Hope you are all having a great Monday after a weekend of development and progress.
In this blog we will be taking a look at one of my favourite markets which is Gold. We will be taking a look at the 4 Hour Timeframe to see where we could see price head to next.
So taking a look at the chart below you should be able to see that not so long ago we saw price break out of the sideways box range to the upside. This led price back to the 1325.00 resistance which was a long position we took.
Now looking at current price you should be able to see that price has shown a retracement from the 1325.00 resistance and is now back at 4 Hour support of 1308.50. It is at this area we are watching to see how price reacts.
It is also key to note that the 1308.50 support also aligns closely with the 50EMA, which therefore means if we see a rejection off the 1308.50 support it would also be a close rejection off the daily 50EMA.
So from here we will be watching to see how price closes at the 1308.50 support for a potential long position back up to the 1325.00 resistance.
Please remember that this is our perspective and you should trade alongside your own analysis!
James at Technical FX53