Carrying on from yesterdays post. This phenomenon (of price hitting a median/reaction or any other type of associated line and then bouncing/recoiling from it with energy and rising/falling until the energy diminishes, perhaps in a series on consecutive small waves ( sometimes) with lower highs until it is ready to approach the line again and try to continue its trend objective) is seen every day in every time frame. Heres a major ML previously posted about from one of the important monthly forks (P0 1.0614 in July1991, P1 1.4535 March 1995, P2 .8225 October 2000). Its CL currently sits at 1.3050 and you can see price bounce on the head of pin when it hits it. Recently it has been one of the important support/resistance levels and i suspect price will be visiting it again shortly. Its always a possible area for a contra trend trade opportunity.
I suggest you draw the fork on your own platform and watch it and let me know if you think i am correct. There are currently 15 'historic' ML's that i have on my EURUSD charts between 1.35 and 1.25 and every one of them has a similar effect. These i guess are real pivot levels.
GOLD:
Gold looks very weak . Next target is the LMLP of the failed fork which will produce a bounce but not a reversal of trend..perhaps a bounce to retest 1700$? Thats where to get your short entry if sentiment and price action fail at that time. The current LMLP lies at around 1650$...
Also remember how price bounced off the Mod Schiff CL back in late December ( arrowed) ?
see below
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