Gold has recovered some of the ground it lost last week and is heading back towards the key $1,200 level. This remains the S/R region for me to watch over the next couple of days as we close out the month of January.
Gold monthly: January is forming up as a bullish reversal candle with just two days left of trade. The candle can be seen as an almost ‘bullish engulfing’ and as an ‘inverted hammer’ candle with both being bullish patterns. Watch to see how the January candle eventually closes after Tuesday though:
Gold weekly: last week’s price action was bearish:
Gold daily: the $1,200 remains as key S/R as seen on this chart:
Gold 4hr: I had thought we might see a deeper pullback but the US$ has weakened and the recent US political situation may be feeding into some of this recent Gold strength. Either way, watch for any make or break at the $1,200 level and for any uptick with momentum as the ADX is currently trending down:
Gold 60 min: note how the 50% fib of the recent swing low ties in with the $1,200 level. This, IMHO, remains the level to watch for any make or break activity:
US$ daily: watch to see whether the US$ holds or breaks down through the key 100 level and through the bottom of the daily Cloud as both are acting as support for the time being.
- A US$ respect of 100 would be bearish for Gold; in the absence of other geo-political concern that is.
- A US$ break & hold down through 100 and the daily Ichimoku Cloud would be bullish for Gold.