4-hour time frame
Technical data:
The senior linear regression channel: direction - down.
The junior linear regression channel: direction - down.
Moving average (20, smoothed) - down.
CCI: -189.9495
Explanations:
The technical picture of gold on July 10 shows that the price has overcome the Murray level of "2/8" and continues to move down. The senior channel is pointing down, indicating a downward trend in the long term. The junior channel is also directed down, which means a downward trend in the medium term. Now the price is below the moving average and below the Murray level of "2/8", which predicts a downward direction in the near future. The first goal for the downward movement, therefore, is the Murray level of "1/8" - 1203.13. If this target is overcome, the new target will be Murray's level of "0/8" - 1187.50. Moving is directed down, and the price is below it, so now the downward movement is more likely. Heiken Ashi painted the last bars in blue, which indicates the current downward movement. Turning the indicator upward will signal about the upward correction loop, and the sell orders will not be timely for the time being. Long positions can be considered only after securing the above movings and turning upward of any channel. The CCI indicator is near the -200 level, which signals a strong oversold of the instrument, an upward rollback is expected.
The nearest support levels are:
S1 - 1203.13
S2 - 1187.50
S3 - 1171.88
Nearest resistance levels:
R1 - 1218.75
R2 - 1234.38
R3 - 1250.00
Trading recommendations:
Based on the analysis of the movement of the gold rate, it is recommended to consider short positions with the goal of 1203.13. The next target is 1187.50. The level of the stop is recommended to be placed above the removals and, as it falls, carry down and stop-loss. With the passage of 1000-1500 points, the stop-loss can be transferred to the zero level. Closing the shorts will be possible in the case of coloring 1-2 bars (depending on the size) in purple color or when the price rebounds from 1203.13. T / P can be placed just above the nearest targets. Purchase orders are not relevant.
In addition to the technical picture, one should also take into account the fundamental data and the time of their release.
Explanations for illustrations:
The senior linear regression channel is the blue lines of unidirectional motion.
The lowest linear regression channel is the violet lines of unidirectional motion.
CCI - the blue line in the indicator window.
Moving average (20, smoothed) - the blue line on the price chart.
Levels of Murray - multicolored horizontal stripes.
Heiken Ashi is an indicator that colors bars in blue or purple.
