Bullish Structure Still Intact
The price of Gold Futures (GC) has continued its strong uptrend, respecting the bullish structure from our previous analysis. The bull flag is still intact, and gold prices are on their way to hitting the bullish target of 2,842.
From here we can assume that if the target is hit, it will likely lead to a sideways consolidation phase for the yellow metal. This is because of the extension of the bull flag and the target is the max extension target.
Daily Chart
We can apply the swing indicator on the daily chart to see how there are consistent higher lows and higher highs. This is something we must remember, its very basic but important and this is why.
Charts are charts, they are objective things but the problem is that people will perceive them differently, and this leads to decisions that are not clear and based on emotions. If you can look at the chart clearly and see it for what it is, then you will be objective in your decision making. So what does this mean for the swing indicator?
The indicator clearly shows higher highs and higher lows as we have said. This is all the information we need to know that we have an uptrend. We don’t need to be subjective from here at all, we can see a clear uptrend and now we can go from here to see what this means. If our strategy states to go with the trend then we know to only go long from here or look for only long trades. No matter what our strategy is we can clearly see how to move forward from this point.
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