This week’s analysis on the monster is going to be a follow up on a previous analysis. At the time, price had just formed an inside bar. Ours was to wait and see whether price will obey the inside bar and continue in a downtrend. Price action clearly did confirm our analysis, and bears came in heavily.
We’ve been in a very strong downtrend denoted by the very few and short retracements. In fact, they all only happened in single candlesticks. Currently price is approaching a major level; we wait for further price action to guide us on our next course of action.
On gold vs the dollar. It is evident price has been trending up gradually and finally hit a top. Then followed by a downtrend since the years’ beginning in the form of a descending wedge. Eventually after a lengthy period of consolidation within the pattern, we have a breakout.
Following the break out, we have a bullish bias which is going of-course to be confirmed by further price action. Affirmation will come by another bullish candle or a successful retest. If the latter passes as true, then the bulls may continue the uptrend which commenced last year.