A pending upside correction on Gold USD
Updated
GOLD Gold USD dropped steeply from an All time High to the 2628 on Monday.
Many traders are betting on getting more on the way to further down but let's keep in mind something about market movements.
A bearish zigzag is formed by 3 steps repeating themselves:
Impulse - Correction - Continuation with Break of Structure
But in the yesterday price action one critical movement is missing: A correction ( an upside pullback in this case) above a major previous High (Lower High) to make a BuyStop, grab liquidity, and then finally to go further down below 2628.
In this Gold USD chart no continuation but rather a single big downsided impulse (Red arrow in the chart)
Consequently I am looking forward seeing a correction (pullback) to the upside to reach a price above a previous Major Lower High as illustrated with a Green Arrow in the chart.
The retracement levels are displayed in this chart thanks to the
Zigzag Orderblock Retracement indicator:
Join us for more information
Trade active
Erratum The Day Low was actually 2624.74 as displayed by the technical Zigzag Orderblock Retracement indicator.
It's worth mentioning that this technical correction again the major trend isn't a trend reversion!
Trade active
Long now in healthy profit as price action is climbing the previous minor Higher Lows.
Comment
Price action is currently attempting to breakout over the bearish channel.
Trade active
Price action met a resistance in the 2645 area.
Next step at 2650 as displayed in the chart above.
Trade active
Oops there's an FVG with an encroachment around 2646.5 that needs to be mitigate.
Trade active
I'm going to wait for 2654 as a main target, and will be willing to exit over this level. Many BuyStops are going to be created to trap liquidity.
Anyway I already enjoyed my journey:)
Trade closed manually
2656 will be good enough Comment
Technically speaking 2666 was my calculation as the ideal price level. I'm going to see if price action manage to reach this price to consider the continuation in the bearish main trend.Comment
Well 2666 reached time to switch the trade direction 
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.