GOLD BERISH FOR 25000PIPS
1. Understanding the Scale:
25000 Pips in Gold: A 25000-pip move in Gold means 250 units of price movement. Given that Gold typically moves in increments of 0.01 (1 pip), a 25000-pip move would imply a change of 250.00 in the price of Gold.
Example: If Gold is trading at $1900, a 25000-pip bearish move would target a price of $1650 (1900 - 250). This is an extremely large move, and it may take months or even years for Gold to make such a significant move unless there are extraordinary circumstances.
3000 Pips Stop Loss: A 3000-pip stop loss would be 30 units of price movement. For example, if Gold is trading at $1900, a stop loss at $2200 (1900 + 30) would be extremely wide, and you would need a very strong bearish outlook to justify it.
2. Technical Analysis for Long-Term Bearish Outlook:
Identify Strong Resistance Levels: The key for a long-term bearish prediction would be identifying major resistance levels that Gold is unable to break through. For instance, levels around $2000 or $2100 have been significant resistance in recent times.
Trend Confirmation: To justify a 25000-pip bearish target, there would need to be a significant breakdown in the market, such as:
Break of Key Support: A strong technical breakdown of key support levels (e.g., $1800, $1700) could signal the start of a long-term downtrend.
Bearish Trend Indicators: You would look for bearish patterns, such as lower highs and lower lows, to confirm the continuation of the downtrend. Moving averages (e.g., 200-day MA crossing below the 50-day MA) and RSI (under 50) would confirm a bearish trend.
3. Fundamental Analysis for a Long-Term Bearish Move:
U.S. Economic Data: A significant rise in U.S. interest rates or a strong U.S. Dollar could potentially push Gold lower. This could come from the Federal Reserve tightening policy in an effort to control inflation.
Deflationary Pressures or Market Risk Aversion: If global markets were to experience a deflationary crisis or risk sentiment dramatically changes (e.g., a global recession), investors might move away from Gold to other assets, driving the price down.
Commodity Market Conditions: Major changes in supply and demand dynamics for Gold (such as large-scale mining increases or lower demand for jewelry) could influence its price over the long term.
25000 Pips in Gold: A 25000-pip move in Gold means 250 units of price movement. Given that Gold typically moves in increments of 0.01 (1 pip), a 25000-pip move would imply a change of 250.00 in the price of Gold.
Example: If Gold is trading at $1900, a 25000-pip bearish move would target a price of $1650 (1900 - 250). This is an extremely large move, and it may take months or even years for Gold to make such a significant move unless there are extraordinary circumstances.
3000 Pips Stop Loss: A 3000-pip stop loss would be 30 units of price movement. For example, if Gold is trading at $1900, a stop loss at $2200 (1900 + 30) would be extremely wide, and you would need a very strong bearish outlook to justify it.
2. Technical Analysis for Long-Term Bearish Outlook:
Identify Strong Resistance Levels: The key for a long-term bearish prediction would be identifying major resistance levels that Gold is unable to break through. For instance, levels around $2000 or $2100 have been significant resistance in recent times.
Trend Confirmation: To justify a 25000-pip bearish target, there would need to be a significant breakdown in the market, such as:
Break of Key Support: A strong technical breakdown of key support levels (e.g., $1800, $1700) could signal the start of a long-term downtrend.
Bearish Trend Indicators: You would look for bearish patterns, such as lower highs and lower lows, to confirm the continuation of the downtrend. Moving averages (e.g., 200-day MA crossing below the 50-day MA) and RSI (under 50) would confirm a bearish trend.
3. Fundamental Analysis for a Long-Term Bearish Move:
U.S. Economic Data: A significant rise in U.S. interest rates or a strong U.S. Dollar could potentially push Gold lower. This could come from the Federal Reserve tightening policy in an effort to control inflation.
Deflationary Pressures or Market Risk Aversion: If global markets were to experience a deflationary crisis or risk sentiment dramatically changes (e.g., a global recession), investors might move away from Gold to other assets, driving the price down.
Commodity Market Conditions: Major changes in supply and demand dynamics for Gold (such as large-scale mining increases or lower demand for jewelry) could influence its price over the long term.
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