From TradingView · · 1m 20s
Gold buyers defend the 61.8 line
A short TradingView read on why gold's slide since early September has stalled right at a level buyers keep protecting.
In brief
A short TradingView read on why gold's slide since early September has stalled right at a level buyers keep protecting. The 61.8% retracement is the line that matters. Hold it through FOMC and the upside case stays alive; lose it and the setup is void. Originally reported by TradingView.
Gold has been grinding lower
Price on XAUUSD has consolidated downward since the start of September, drifting rather than crashing.
“Price has been consolidating downward since early September”
The 61.8 zone is holding
Sellers pushed at the 61.8% Fibonacci retracement and could not close below it. That failure is the whole point of the chart.
Buyers keep showing up
Each test of the level has met enough demand to absorb the selling, which is why the floor has not given way.
“strong buyer pressure has prevented it from breaking below the 61.8% zone”
FOMC is the next test
Tomorrow's Federal Reserve announcement is the catalyst. It decides whether the support survives or gets broken on volume.
A hold sets up the long
If the zone still holds after the news, the trader sees room for another major leg higher. The bias here is long.
“we could be setting up for another major move to the upside”
Read it as one view
This is a single trader's chart idea on TradingView, not a recommendation. TradingView states plainly that it does not endorse it.
“The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice”
The takeaway
The 61.8% retracement is the line that matters. Hold it through FOMC and the upside case stays alive; lose it and the setup is void.
