Gold | Overview | Following the birds

Overlook
If i look at the previous Uptrend of Gold (1976 -> 1980) and our current swing we see the following similarities:

1. Uptrend
2. Downbreak to the 50% of the move
3. Uptrend to the big resistance level (Orange Line) that held price down
4. Engulf of said resistance level but no follow through

If Gold price moves like the in the previous swing the following should develop:
1. Downbreak again to the 50%
2. No real demand showing up
3. Downbreak under it and breaking the next support level without real demand either
4. After we find support, move back up to the 50% but this time it acts as a strong resistance

So what i plan to do:
1. Unless i see a clear break of the orange S/R level i dont plan to take any Longs
2. If the highest blue rectangle should be broken again i will start looking for Shorts
3. First area i would look for Longs if price should break down would be the 50% Fib aswell the green rectangle

Fundamentally i cant imagine Gold falling that much but never say never.

Good luck



Disclaimer:
- This information does not constitute as financial advice and is only for educational purposes. I am not your financial advisor.
- You trade entirely at your own risk
- Make your own research
- Finance and trading is evil, capitalism is bad, duh ;)