Bulls & Bears Fighting To Take Control Of Yellow Metal's Trend!
Finally the H&S PATTERN has been completed on the daily charts and price has HIT the ascending trendline support that had been in the region of 1270.00! Therefore now the question remains, WHERE WILL THE YELLOW METAL HEAD NEXT?
Be noted that the price has already HIT the ascending trendline where a lot of BUYERS AND SELLERS will fight to take control of the trend. Have a look at the main chart here, the red horizontal lines represent the concrete support and resistance levels drawn from the monthly TIMEFRAME and they represent where the price might be heading next if a breakout occurs.
Currently the price is supported by an ascending trendline and beneath this trendline there is another long term trendline, what this means if a break of the current held trendline occurs the price might head towards the 1235.00 region where the next ascending trendline is present. On the flip side, should the bulls gain enough momentum, the descending trendline (have a look at the main chart) will have to be broken and the price will probably skyrocket to 1270.00 level.
Fundamentally, the risk aversion is taking all the headlines at the moment, but the many central bank expecting to cut rates this year and eurozone slowdown will probably take the yellow metal higher. All in all the price is at a crucial level and we may see a lot of volatility, but as a precaution we should probably enter once the price has broken the structures (see the chart) before making an entry.
This just represents the current outlook on this pair and its not a trade signal. shall the criteria meet in the near future i will post the trade details in a new post. Hope you found this helpful cheers
Be noted that the price has already HIT the ascending trendline where a lot of BUYERS AND SELLERS will fight to take control of the trend. Have a look at the main chart here, the red horizontal lines represent the concrete support and resistance levels drawn from the monthly TIMEFRAME and they represent where the price might be heading next if a breakout occurs.
Currently the price is supported by an ascending trendline and beneath this trendline there is another long term trendline, what this means if a break of the current held trendline occurs the price might head towards the 1235.00 region where the next ascending trendline is present. On the flip side, should the bulls gain enough momentum, the descending trendline (have a look at the main chart) will have to be broken and the price will probably skyrocket to 1270.00 level.
Fundamentally, the risk aversion is taking all the headlines at the moment, but the many central bank expecting to cut rates this year and eurozone slowdown will probably take the yellow metal higher. All in all the price is at a crucial level and we may see a lot of volatility, but as a precaution we should probably enter once the price has broken the structures (see the chart) before making an entry.
This just represents the current outlook on this pair and its not a trade signal. shall the criteria meet in the near future i will post the trade details in a new post. Hope you found this helpful cheers
