Hey guys, recently the market has been extremely unpredictable considering current market conditions and Its impact on a wide range of things such as Stocks, Commodities and Foreign Exchange etc.
This is my first analysis conducted on a commodity; XAU/USD which should be really interesting!
Please do not forget to follow/like my content for more trade ideas and possible trade signals/opportunities.
As we begin trading for the first time in June, we notice the market slowly beginning to recover as the COVID-19 pandemic eases worldwide. Recently, we had oil prices decline to a negative figure which we've never seen since 1995, due to a contraction in global demand for oil. Although, as markets slowly began to make a recovery, oil prices have climbed back up towards its short term average price.
Now, let's talk GOLD!
Since the 1st Feb, Gold has rallied to near historic highs significantly from 1200.000 to a current high of 1742.000
According to technical analysis, we identify a source of exponential growth particularly on the Monthly given higher highs and higher lows. In regards to our 4/hr time frame, from the 18th May bullish structure was broken as sellers began entering the market, driving price towards a descending bearish structure of consolidation. Ultimately, we see that the descending order of bearish structure was broken as there was an increased amount of buy pressure @1700.000, where more buyers decided to enter the market. Despite being in between the descending market structure, we see that price rejected and price failed to pullback down, breaking above the SMA and our point of resistance @1718.545
With price breaking our second "Purple vertical line" indicating our point of resistance, we now expect it to continue to surge upwards towards our previous high, which ultimately would be our new level of support if price further escalates above that level.
This is my first analysis conducted on a commodity; XAU/USD which should be really interesting!
Please do not forget to follow/like my content for more trade ideas and possible trade signals/opportunities.
As we begin trading for the first time in June, we notice the market slowly beginning to recover as the COVID-19 pandemic eases worldwide. Recently, we had oil prices decline to a negative figure which we've never seen since 1995, due to a contraction in global demand for oil. Although, as markets slowly began to make a recovery, oil prices have climbed back up towards its short term average price.
Now, let's talk GOLD!
Since the 1st Feb, Gold has rallied to near historic highs significantly from 1200.000 to a current high of 1742.000
According to technical analysis, we identify a source of exponential growth particularly on the Monthly given higher highs and higher lows. In regards to our 4/hr time frame, from the 18th May bullish structure was broken as sellers began entering the market, driving price towards a descending bearish structure of consolidation. Ultimately, we see that the descending order of bearish structure was broken as there was an increased amount of buy pressure @1700.000, where more buyers decided to enter the market. Despite being in between the descending market structure, we see that price rejected and price failed to pullback down, breaking above the SMA and our point of resistance @1718.545
With price breaking our second "Purple vertical line" indicating our point of resistance, we now expect it to continue to surge upwards towards our previous high, which ultimately would be our new level of support if price further escalates above that level.