- Gold four hour chart is testing its support level near 1700.
- This level has acted as support in hourly chart recently.
- Daily chart too shows price near the supporting trend line. So bigger correction will be possible only if the supporting trend line gets taken out decisively.
- ES CORRECTION AFTER NEGATIVE DIVERGENCE
CHART-II
- MACD negative divergence discussed below has given a correction in favor of bears.
- Four hour candle closing near the lows may turn the trend in favor of bears
CHART-I
- ES one hour chart is showing price in a small range.
- Four hour chart is showing a possible negative divergence setup with MACD indicator which might result in a fall.
- Daily chart shows price stuck between 200 SMA and the resistance line. A decisive move out of this range should result in the next big move.
- US DOLLAR ANALYSIS
- It's a correction in an up move as long as 4900 - 4920 levels are not broken. Beyond the correction may get deeper.
- An ascending broadening wedge pattern is getting formed. Pattern is not complete yet 3 touches on the resistance and support line would make an effective pattern. Its a bearish pattern target on break down would be the starting point of the supporting trend line.
- Important support in hour chart is at 4916. Breaking the trend line and 4916 level on closing basis will favor bears.
- Price is pausing after an up move. The last chart shows 5 Day High EMA trying to cross 50 Day SMA. At this stage if price price stay above 5 Day high EMA on closing basis this up move will continue to gain strength.
- Weakness can be seen if price does not hold above 5 Day High EMA or a close below 50 Day SMA.
- 50 Day SMA at 5017
- 5 Day High EMA at 5025
- US DOLLAR ANALYSIS
- Price is showing a consolidation triangle pattern in four hour chart which may give good direction on breakout.
- USD will trade sideways to negative if it stays below 50 Period SMA.. Breakout below 200 SMA or above 50 period SMA can give good direction..
