Ming Jong Tey
Independent Analyst
The uptrend of Gold has ended since a Wyckoff change of character bar showed up on 9 May 2022 after a climactic run-up, as explained in my video earlier. This is a key concept of the Wyckoff method to identify a change of the trading environment, which is applicable to all instruments like Gold, stocks, indices futures, crude oil, etc…Watch the video below.
Since then, Gold has been consolidating between 1900-1960 for slightly more than a month. Sign of weakness showed up after confirmation of a Wyckoff upthrust on 19 April 2022 followed by a break below the support at 1900 with a selloff tested 1800 with increasing of volume.
After an automatic rally off the low at 1800, Gold has been consolidating between 1838 and 1870 as shown in the chart below.
On 3 Jun 2022 a Wyckoff upthrust showed up in Gold followed by a reaction tested the support at 1837. Although the upthrust was not accompanied by high volume suggested non-threatening supply, poor demand could also cause Gold to break below the support.
Since Gold broke below the support at 1900 in May 2022 comes with increasing of supply (as annotated in the volume pane), it is likely to be tested.
Should Gold break below the immediate support at 1837, a test of 1800 can be expected (as annotated in orange). Gold is expected to consolidate between 1800-1870 in the short-term.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
EUR/USD rebounds to near 1.0850, awaits Fedspeak
EUR/USD is rebounding to near 1.0850 in the early European session on Friday. China's stimulus optimism and a broad US Dollar correction help the pair recover the dovish ECB decision-induced losses. All eyes remain on the Fedspeak.
GBP/USD recovers above 1.3050 after UK Retail Sales data
GBP/USD extends recovery from a two-month low to trade above 1.3050 in European trading on Friday. Stronger-than-expected UK Retail Sales data put a fresh bid under the Pound. Meanwhile, the US Dollar sees some profit-taking ahead of Fedspeak.
Gold price stands firm near record high, above $2,700 amid global monetary easing cycle
Gold price builds on its uptrend witnessed over the past week or so and climbs beyond the $2,700 mark, hitting a fresh record high during the Asian session on Friday. Major central banks have been cutting interest rates and are expected to ease monetary policy further.
Dogecoin whale activity takes a hit, will DOGE price plummet?
Dogecoin notes a drop in the count and volume of whale transactions in the last two days. On-chain data from IntoTheBlock shows that whales have likely slowed down their activity.
Retail Sales post broad advance in September
Despite worries about the financial health of the consumer and potential weakening in the labor market, U.S. retailers had a solid month in September. Control group sales rose more than twice the expected amount, pointing to stronger Q3 consumer spending.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.