Depreciation in price of XAUUSD in coming year.
The year 2022 started off at Demand/ Support zone $2100 and $2000 with a bearish confirmation on higher timeframe (Month). It made a first rejection for bullish at $1800 (Supply/Resistance) but failed to break price $1900. Price continued depreciating and broke supply price $1800 to a new supply/resistance price $1700. So, then the previous supply price $1800 became a demand/support for a confirmation of bearish trend direction on higher timeframe. Price respected $1800 for the first time in the year as a demand/support zone (1st M for the M W M formation), went bearish and broke through $1700 to as low as $1620 (new supply/resistance). We then had a W formation (W for the M W M formation) at new supply/resistance zone $1620 and $1650, went bullish and respected demand/support price $1800 for the second time (M confirmation for M W M formation).
We are currently in the demand/supply zone $1800 and $1780 with a further confirmation on TDI for bearish as well as price action on previous week failed to break $1800 with doji candlestick for a change of direction. Weekly chart interpretation of M W M formation for bearish trend, all in respect to the descending trend line structure.
This means price is going to depreciate to as low as price zone $1400 and $1300 in the coming year to end the full bearish trend direction on higher timeframe or month.
We are currently in the demand/supply zone $1800 and $1780 with a further confirmation on TDI for bearish as well as price action on previous week failed to break $1800 with doji candlestick for a change of direction. Weekly chart interpretation of M W M formation for bearish trend, all in respect to the descending trend line structure.
This means price is going to depreciate to as low as price zone $1400 and $1300 in the coming year to end the full bearish trend direction on higher timeframe or month.
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