Gold Analysis for August 22, 2023 - Projected Target at 1901.081
Updated
Summary
The price movement observed on August 21, as indicated by the candlestick, managed to surpass the opening value of the candle on August 17, ultimately concluding the day's trading session at 1894.895. Notably, the initial price of August 17 had been 1892.090.
By employing the Fibonacci Retracement tool and commencing the measurement from 1894.895 and extending it down to the lowest recorded value of 1884.885, a noteworthy level emerges at the 1.618 extension, positioned at 1901.081.
A strategic entry point is identified within the golden zone at 1889.890, reflecting a favorable area for potential trade initiation. To uphold risk management, a Stop Loss (SL) order is recommended to be placed beneath the lowest price point, specifically at 1904, safeguarding against adverse market movements.
Reason for Entry:
Earlier analysis can be traced back on my "minds"
Upon revisiting the earlier analysis and incorporating insights from the provided chart, several compelling reasons support the entry decision:
* Bullish Divergence on 4-hour Chart: A bullish divergence pattern has emerged on the 4-hour chart, indicating a potential shift in market sentiment. This phenomenon suggests that even as the price trend continues downward, the momentum indicators are showing signs of upward potential.
* Stalling of Daily Candle's New Low: The daily timeframe showcases a noteworthy development, where the downward momentum has paused, preventing the formation of new lower lows. This can be indicative of a shift in market dynamics and possibly a reversal of the current trend.
* QM Buy Formation: The presence of a QM Buy Formation adds a further layer of validity to the analysis. This formation offers a structured pattern that aligns with potential bullish moves.
* Strategic Stop Loss Placement at 1904: The strategy incorporates a Stop Loss (SL) level at 1904, chosen for a specific reason. It's designed to safeguard against the invalidation of the QM Buy Formation. If the price dips below this threshold, it could signal a change in the anticipated trend, warranting an exit from the trade to manage potential losses.
Delving into a more detailed analysis using the BBMA approach on the 4-hour chart:
* Multiple Rejections Around BB Low and MA 5/10 Low: The price action has consistently encountered resistance around the lower Bollinger Band (BB) and the Moving Average (MA) 5/10 lows. These repeated rejections are indicative of a potential for a higher pullback. While the broader trend remains bearish, these significant pullbacks can provide trading opportunities.
* CSK Buy Candle and Rejection Tail: A notable event has occurred with the formation of a CSK Buy candle, followed by the subsequent candle closing near the middle BB. This price action forms a distinctive tail extending from the MA 5/10 low, suggesting a strong buyer rejection at that level.
Overall, considering the convergence of these indicators and observations, a strategic entry decision aligns with the notion of a potential price pullback. It's essential to maintain vigilance, particularly in relation to the 1904 SL level, which serves as a protective measure to uphold the trade's integrity in case of unexpected market behavior.
The price movement observed on August 21, as indicated by the candlestick, managed to surpass the opening value of the candle on August 17, ultimately concluding the day's trading session at 1894.895. Notably, the initial price of August 17 had been 1892.090.
By employing the Fibonacci Retracement tool and commencing the measurement from 1894.895 and extending it down to the lowest recorded value of 1884.885, a noteworthy level emerges at the 1.618 extension, positioned at 1901.081.
A strategic entry point is identified within the golden zone at 1889.890, reflecting a favorable area for potential trade initiation. To uphold risk management, a Stop Loss (SL) order is recommended to be placed beneath the lowest price point, specifically at 1904, safeguarding against adverse market movements.
Reason for Entry:
Earlier analysis can be traced back on my "minds"
Upon revisiting the earlier analysis and incorporating insights from the provided chart, several compelling reasons support the entry decision:
* Bullish Divergence on 4-hour Chart: A bullish divergence pattern has emerged on the 4-hour chart, indicating a potential shift in market sentiment. This phenomenon suggests that even as the price trend continues downward, the momentum indicators are showing signs of upward potential.
* Stalling of Daily Candle's New Low: The daily timeframe showcases a noteworthy development, where the downward momentum has paused, preventing the formation of new lower lows. This can be indicative of a shift in market dynamics and possibly a reversal of the current trend.
* QM Buy Formation: The presence of a QM Buy Formation adds a further layer of validity to the analysis. This formation offers a structured pattern that aligns with potential bullish moves.
* Strategic Stop Loss Placement at 1904: The strategy incorporates a Stop Loss (SL) level at 1904, chosen for a specific reason. It's designed to safeguard against the invalidation of the QM Buy Formation. If the price dips below this threshold, it could signal a change in the anticipated trend, warranting an exit from the trade to manage potential losses.
Delving into a more detailed analysis using the BBMA approach on the 4-hour chart:
* Multiple Rejections Around BB Low and MA 5/10 Low: The price action has consistently encountered resistance around the lower Bollinger Band (BB) and the Moving Average (MA) 5/10 lows. These repeated rejections are indicative of a potential for a higher pullback. While the broader trend remains bearish, these significant pullbacks can provide trading opportunities.
* CSK Buy Candle and Rejection Tail: A notable event has occurred with the formation of a CSK Buy candle, followed by the subsequent candle closing near the middle BB. This price action forms a distinctive tail extending from the MA 5/10 low, suggesting a strong buyer rejection at that level.
Overall, considering the convergence of these indicators and observations, a strategic entry decision aligns with the notion of a potential price pullback. It's essential to maintain vigilance, particularly in relation to the 1904 SL level, which serves as a protective measure to uphold the trade's integrity in case of unexpected market behavior.
Note
No positions at the moment. Waiting for price to go down at 1888 (MA 5/10 low area)I expect that price may go there and eventually reject on 4h timeframe.
We'll see at the US session.
I can't recommend to place any long entry at this point. My ideal invalidation is 1884 which makes reward risk ratio bad. Thus, I'll patiently wait.
Note
Kind of realized that this signal is quite late published.Should've sent this signal when the candle made the CSAK.
The candle after CSAK is where people should place their buys.
Then TP at 1901.081
Better luck next time I guess??
On BBMA Strategy, switching to D1, our target is also a re-entry zone for shorts. One good news from USD will continue the price to go even further, invalidating this signal.
Note
Do not place any long folks!This is not a bullish signal.
This is just a short term upward analysis.
Whenever we make initial breaks price tends to hit fib 1.618 zone.
That's the basis of this analysis.
Note
We almost hit 1.618. But not our buy entry. Haha.Note
Target hit. But not open buy orders. Haha.
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