Hi Traders,
Fundamentals/related news:
Bull: Hope you are doing well! Equity in the US market has been extremely volatile. We saw common US indexes falling 2% and rising 2% in addition to the retail investor community namely WallStreetBets betting against the hedge funds and IB; the market has been quite indecisive.
Bull: Two days ago we saw advance GDP q/q was not a good sign for the economy, thus we saw a spike in gold and stopped at 1861-1862 which was extremely volatile and began to drop to 1834 area again, forming a double top and double bottom (surprisingly extreme) resistance and support area.
Bull: Ready or not -- $1.9 trillion stimulus/fiscal policy/quantitative easing will be distributed sooner or later. This could mean we will see huge volatility in gold (either upside or downside). Most likely QE brings USD value down; hence XAUUSD will go up
Technical:
Volatility: EOM is near. We have seen 1-month consolidation with a tight range between 1805-1874. This means the consolidation wave is likely to move very soon out of the range and we will see a new area
Bear: momentum is bearish that we are seeing a trend to fall down. MA 50 is already above the current price
Indecisive: char pattern is forming bear flag or wedge pattern, but it can be falling wedge/reversal chart pattern
Currently, 1H TF is showing very clear HnS with a head at 1861 and shoulders around 1840-1850 area. My honest opinion about the price action is showing a very bearish pattern because it has been rejecting the ups lately. With a note that, if it breaks 1861, with high probability chances, we will see 1900.
Scenario 1: if it breaks 1864, it will fly to 1870 and come back to retrace for consolidation around 1864. Then prepare a buy with a stop loss around 1858-1860 (during NY time or hour candle changes, be prepared to see a huge spike in volatility)
Scenario 2: If it breaks the neckline around 1839, prepare to short. 1839 is the entry point and stop loss around 1845
Take profit should be 2:1 or even 3:1
Please give a like and comment below for feedbacks. Would much be appreciated!
Fundamentals/related news:
Bull: Hope you are doing well! Equity in the US market has been extremely volatile. We saw common US indexes falling 2% and rising 2% in addition to the retail investor community namely WallStreetBets betting against the hedge funds and IB; the market has been quite indecisive.
Bull: Two days ago we saw advance GDP q/q was not a good sign for the economy, thus we saw a spike in gold and stopped at 1861-1862 which was extremely volatile and began to drop to 1834 area again, forming a double top and double bottom (surprisingly extreme) resistance and support area.
Bull: Ready or not -- $1.9 trillion stimulus/fiscal policy/quantitative easing will be distributed sooner or later. This could mean we will see huge volatility in gold (either upside or downside). Most likely QE brings USD value down; hence XAUUSD will go up
Technical:
Volatility: EOM is near. We have seen 1-month consolidation with a tight range between 1805-1874. This means the consolidation wave is likely to move very soon out of the range and we will see a new area
Bear: momentum is bearish that we are seeing a trend to fall down. MA 50 is already above the current price
Indecisive: char pattern is forming bear flag or wedge pattern, but it can be falling wedge/reversal chart pattern
Currently, 1H TF is showing very clear HnS with a head at 1861 and shoulders around 1840-1850 area. My honest opinion about the price action is showing a very bearish pattern because it has been rejecting the ups lately. With a note that, if it breaks 1861, with high probability chances, we will see 1900.
Scenario 1: if it breaks 1864, it will fly to 1870 and come back to retrace for consolidation around 1864. Then prepare a buy with a stop loss around 1858-1860 (during NY time or hour candle changes, be prepared to see a huge spike in volatility)
Scenario 2: If it breaks the neckline around 1839, prepare to short. 1839 is the entry point and stop loss around 1845
Take profit should be 2:1 or even 3:1
Please give a like and comment below for feedbacks. Would much be appreciated!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.