Can anyone say that fibs don’t matter? Chart time! Gold, 4hr candles, 3 months:
Bollinger bands chart 120 x 4 hours, or roughly a trading month. Fibs are of course the 1815-1533 CME September margin hike levels. Notice how it got enormous lift right after getting a clear close breaking above the 1641 level on the 4hrs? This is where the action’s at, anyone mentioning the 200 SMA will be promptly laughed at here!
I’ve also included my immediate targets here. The 1675 level is obviously fairly juicy, but watching the negative trend line coming down before then could be great for extra insight into how this contract will react before the weekend possibly. It’s steep, so don’t be too surprised by a break lower, bulls have had quite a run and it will be interesting to see if they don’t need a break soon!
Notice the channel (not a raff) and also take some note on the falling trend line up ahead being buffed by vague channel action before the 1710 fib level break. Which is otherwise my next target if 1675 gets taken out, but that might be one to watch for during next week.
Note: This chart was made 3-4 hours prior to posting, price is currently sitting around 1656 after peaking right shy of 1658, which is a level which was very important after the CME margin hike as the price action often ended up there, trying to figure out if breaking below 1641 or above 1675 was more attractive. Again, keen eye needed!