Closing last week’s trading occurred below the weekly control zone 1470.58-1466.08. This indicates a continued downward movement in the medium term. It is important to note that the level of 1449.34 is the upper boundary of the zone of the average monthly course. Its test will significantly increase the likelihood of a large demand.
At the beginning of the week, the decline remains a priority movement, so you will need to search for levels to fully consolidate the short position. Such a mark, as already discussed above, will be the level of 1449.34.
An alternative model will be developed if a sharp rise in the price of gold begins. This will be possible when approaching the monthly control zone. In order to consider purchases, the formation of a false breakout pattern of the Friday low is necessary. The first goal of growth will be WCZ 1/2 1480.55-1478.30.
Daily CZ – daily control zone. The area formed by important data from the futures market, which change several times a year.
Weekly CZ – weekly control zone. The zone formed by important marks of the futures market, which change several times a year.
Monthly CZ – monthly control zone. The zone, which is a reflection of the average volatility over the past year.
The material has been provided by InstaForex Company – www.instaforex.com
Source:: Control zones Gold 11/11/19