An Ascending Channel in Gold
Skerdian Meta • 2 min read
The US markets were closed yesterday for Thanksgiving and most forex traders in the US took the weekend off. So, the liquidity is thin and the forex market has been pretty quiet. I don’t expect much price action for the remainder of the day either.
Although, we must be careful because the market is all over the place today. The Euro and GBP are higher, while the Yen is lower. If we look at the commodity Dollars, we see that the Kiwi is slightly better, while the Canadian and the Australian Dollars have lost some ground.
Gold is sliding lower as well, and it is now finding support at the 50 SMA (yellow). The hourly Gold chart is oversold, but I’m not going long with a short-term forex signal because Gold is trendy when it comes to the smaller time frame charts such as the H1 and the H4 charts, and it has just started to trend lower.
Now that the channel is on, moving averages are not that important.
As you can see on the H4 chart, Gold has formed an ascending channel this month. The highs have been getting higher, hence the higher entry price of our Gold forex signals every time we sold this metal.
Right now, the price is somewhere near the middle of the channel and is heading down, so we’re not going long with a short-term Gold signal based on the hourly chart. We can’t even open a sell signal since we already have a long-term sell signal here.
I will look to buy Gold when we reach the bottom line of the channel after closing the sell signal. Although, that forex signal will have to wait for next week because this week is almost over.