GOLD Robust Pullback To 1600| Correction| 24th February 2020
Hi. Welcome to my trading diary. This is the diary where I collect data, making research and analysis towards some observation of several instrument. Today I would like to take time to publish some important highlight of the XAUUSD Gold price for the last week trading activities.
60 minutes chart observation (1 Hour)
At the seventh 7th bar stick, we all witnessed heavy volume and the price rejection start from the highest high of 1649 to 1643. The bear trader start to defend before the price reached 1650 and that is final! If the price went to touch 1650 or break above the 1650, we can say bye-bye to 1600 as the price will move higher towards 1700. This can be done and the bear traders stand their ground to defend the 1649. Congratulation.
120 minutes chart (2 Hours) observation
The highest high has getting weaker and lower. This tells us the price is moving downward as the bear trader getting control after has lose fight on the recent heavy volume between bull trader. I have recorded the price was so volatile at that time until you can scalp trading in a very short time to gain profit. That bar chart was a ROBUST SUPPLY. If I tell you something, you guys might not even want to believe as this bar can lead the price on what you see on the screen from 1643 going back to 1600 or perhaps to 1590 to where it all started of all this chronology in the first place.
3 bar of robust supply with a hammer??? The last bar of the closing day last Friday has no rejection of price movement to the upward as bull trader has losing power of momentum to push the price above 1647 and ended up to 1643. That is the agreement to close the trade of the week.
180 minutes chart (3 Hours):
If you open the chart on this hour, clearly described the potential bearish movement. It is formed to alert us through a couple of price action that has been starting. This is the beginning stage and you guys are very lucky to see it and perhaps maybe to ride the bearish trend next week Monday 24th February 2020.
Bar 1. O: 1637.76 | H: 1649.34 | L: 1637.15| C: 1643.15
Bar 2. O: 1643.40 | H: 1648.49 | L: 1638.40| C: 1647.69
Bar 3. O: 1647.67 | H: 1647.90| L: 1642.72| C: 1643.40
I have been record those bar for the 3 previous period and I am very shocked that this is to be the price closing on Friday 21st February 2020 tells us that the bear trader is moving to collect a some power to push the price down. To restore that momentum, they pushed the price slowly and gather the volume to make not so drastically but for sure in order to remain the bear fellow traders to join that the price on 1643 is the right price to defend. Bear trader engulfed the last remain momentum power left by the bull trader on 1647.
Conclusion: 37 -49 -43 -48 -47 -47 -43. As you can see, this number is the force change hand from bull to bear. Before the change hand begin, bull trader must get weaken in order to surrender the forces to bear trader. If not, this will be the consolidation period which trader is advisable to leave the trade. This is will be the tweezers of an uptrend. Eliminate the gain.
If you see the recent 3 bars, on the 1 bar itself shown the heavy volume. What does this mean? This bar 1 tells us the fighting process between Bear and the Bull trader to defend the ground or to attack the price to go higher. At last, the bear trader won the price on the price battleground and let the bear trader conquered the price starting from 1649 to 1643. Whether this is a valid tweezers on the 180 minutes, has to be confirm by this Monday 24th February 2020.
WHAT IF... This is false signal and continuation?
If you looking towards the chart, the volume in the confirmation. After a very heavy volume, there will be only one winner. Either bear trader or bull trader. Pull back the 60 minutes chart (1 hour). See the last 4 bar stick from the last. On the 3 & 4 bars, it is the tweezers. Gain elimination. On the last 1 & 2 bar, the bull trader cant push the price upward. Instead, bull traders push the price down. That is the confirmation for the bear traders to take over the price battleground and checkmate the trade on 1643.
If you ask for my opinion, I would like to hold the SHORT/Sell the gold from 1643. I am looking to the price of 1600 or maybe worst 1590. Perhaps I will close the profit on 1600. This put the gold state to highly oversold and the uptrend has come to an end. I would like simply to say this this is just a correction or pullback. For long-term, only support the gold purchasing. If anyone of you guys already held a buy on gold, retreat the trade and put sell/short. Better to ride a band wagon for this pullback from the start and the start has just begun yesterday Friday 21st February 2020. Welcome back home 1600!
Hypothesis
Why trader bought gold and just to be like a buying frenzy gold? This is because the uncertainty towards the China coronavirus. The more disease increasing, the more poeple/trader buying gold. As you check the news now, despite the risk of spreading China have to make their economy work. The death tolls increasing but instead last week China announces they will put all the sector back in operation, this is the chances for gold to make it a discount price so that we can buy the gold cheaper. I mean 1643 price per ounce. Are you crazy? This is expensive. If you buying into physical gold, then you have to buy to. Sooner or later this year, gold will increase anytime up to $2000 dollar. Please let just give us a bit more discount so that we can purchase physical gold a bit cheaper-lah! After 1600 reach, please buy physical gold. Quite expensive but the gold price will not comes back to $1000 an ounces y'all. What to do?
The more the FOMC FED decided to decrease interest rate, the more people/traders will purchase gold. People will only invest or would like to invest only if the country raise interest rate. From 2% to 1.75% is enough to make investor to pull their money and invest to gold as safe heaven. This is because rising interest rates make stocks, government bonds and other investments more attractive to investors. You cut the interest rate, easy. People put money towards gold. What else if you want to put your money if not gold? Gold can be investment, securities or asset.
Article by Zezu Zaza
60 minutes chart observation (1 Hour)
At the seventh 7th bar stick, we all witnessed heavy volume and the price rejection start from the highest high of 1649 to 1643. The bear trader start to defend before the price reached 1650 and that is final! If the price went to touch 1650 or break above the 1650, we can say bye-bye to 1600 as the price will move higher towards 1700. This can be done and the bear traders stand their ground to defend the 1649. Congratulation.
120 minutes chart (2 Hours) observation
The highest high has getting weaker and lower. This tells us the price is moving downward as the bear trader getting control after has lose fight on the recent heavy volume between bull trader. I have recorded the price was so volatile at that time until you can scalp trading in a very short time to gain profit. That bar chart was a ROBUST SUPPLY. If I tell you something, you guys might not even want to believe as this bar can lead the price on what you see on the screen from 1643 going back to 1600 or perhaps to 1590 to where it all started of all this chronology in the first place.
3 bar of robust supply with a hammer??? The last bar of the closing day last Friday has no rejection of price movement to the upward as bull trader has losing power of momentum to push the price above 1647 and ended up to 1643. That is the agreement to close the trade of the week.
180 minutes chart (3 Hours):
If you open the chart on this hour, clearly described the potential bearish movement. It is formed to alert us through a couple of price action that has been starting. This is the beginning stage and you guys are very lucky to see it and perhaps maybe to ride the bearish trend next week Monday 24th February 2020.
Bar 1. O: 1637.76 | H: 1649.34 | L: 1637.15| C: 1643.15
Bar 2. O: 1643.40 | H: 1648.49 | L: 1638.40| C: 1647.69
Bar 3. O: 1647.67 | H: 1647.90| L: 1642.72| C: 1643.40
I have been record those bar for the 3 previous period and I am very shocked that this is to be the price closing on Friday 21st February 2020 tells us that the bear trader is moving to collect a some power to push the price down. To restore that momentum, they pushed the price slowly and gather the volume to make not so drastically but for sure in order to remain the bear fellow traders to join that the price on 1643 is the right price to defend. Bear trader engulfed the last remain momentum power left by the bull trader on 1647.
Conclusion: 37 -49 -43 -48 -47 -47 -43. As you can see, this number is the force change hand from bull to bear. Before the change hand begin, bull trader must get weaken in order to surrender the forces to bear trader. If not, this will be the consolidation period which trader is advisable to leave the trade. This is will be the tweezers of an uptrend. Eliminate the gain.
If you see the recent 3 bars, on the 1 bar itself shown the heavy volume. What does this mean? This bar 1 tells us the fighting process between Bear and the Bull trader to defend the ground or to attack the price to go higher. At last, the bear trader won the price on the price battleground and let the bear trader conquered the price starting from 1649 to 1643. Whether this is a valid tweezers on the 180 minutes, has to be confirm by this Monday 24th February 2020.
WHAT IF... This is false signal and continuation?
If you looking towards the chart, the volume in the confirmation. After a very heavy volume, there will be only one winner. Either bear trader or bull trader. Pull back the 60 minutes chart (1 hour). See the last 4 bar stick from the last. On the 3 & 4 bars, it is the tweezers. Gain elimination. On the last 1 & 2 bar, the bull trader cant push the price upward. Instead, bull traders push the price down. That is the confirmation for the bear traders to take over the price battleground and checkmate the trade on 1643.
If you ask for my opinion, I would like to hold the SHORT/Sell the gold from 1643. I am looking to the price of 1600 or maybe worst 1590. Perhaps I will close the profit on 1600. This put the gold state to highly oversold and the uptrend has come to an end. I would like simply to say this this is just a correction or pullback. For long-term, only support the gold purchasing. If anyone of you guys already held a buy on gold, retreat the trade and put sell/short. Better to ride a band wagon for this pullback from the start and the start has just begun yesterday Friday 21st February 2020. Welcome back home 1600!
Hypothesis
Why trader bought gold and just to be like a buying frenzy gold? This is because the uncertainty towards the China coronavirus. The more disease increasing, the more poeple/trader buying gold. As you check the news now, despite the risk of spreading China have to make their economy work. The death tolls increasing but instead last week China announces they will put all the sector back in operation, this is the chances for gold to make it a discount price so that we can buy the gold cheaper. I mean 1643 price per ounce. Are you crazy? This is expensive. If you buying into physical gold, then you have to buy to. Sooner or later this year, gold will increase anytime up to $2000 dollar. Please let just give us a bit more discount so that we can purchase physical gold a bit cheaper-lah! After 1600 reach, please buy physical gold. Quite expensive but the gold price will not comes back to $1000 an ounces y'all. What to do?
The more the FOMC FED decided to decrease interest rate, the more people/traders will purchase gold. People will only invest or would like to invest only if the country raise interest rate. From 2% to 1.75% is enough to make investor to pull their money and invest to gold as safe heaven. This is because rising interest rates make stocks, government bonds and other investments more attractive to investors. You cut the interest rate, easy. People put money towards gold. What else if you want to put your money if not gold? Gold can be investment, securities or asset.
Article by Zezu Zaza
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