From my previous analysis on Gold, the momentum for the daily have shifted to a strong bullish engulfing. This was due to the Asia Pacific session’s fears over the Coronavirus and it is a case of fundamentals in play.
Looking at the 4H, Gold’s price action had reached the previous lower high. We can see that bullish momentum has been weakening due to the reduced volume on the 4H. Another that adds to my bearish analysis is the believe the spike into 1577.55, it is a stop hunt by the market makers to reduce the amount of shorters in the market. A clearer idea of this spike is illustrated in the 15Min.
Now, I anticipate the market to shift to bearish to alleviate the Coronavirus price hikes. Additionally, I do believe market makers are looking to trigger the stop losses of buyers at the red zones highlighted in the 15 minute. Historically, there had been many instances of spikes to hunt stop losses and a sudden reversal to hunt stop losses in the opposite direction.
My bias is still short on Gold and I believe 1560 is the target for the bear.
Looking at the 4H, Gold’s price action had reached the previous lower high. We can see that bullish momentum has been weakening due to the reduced volume on the 4H. Another that adds to my bearish analysis is the believe the spike into 1577.55, it is a stop hunt by the market makers to reduce the amount of shorters in the market. A clearer idea of this spike is illustrated in the 15Min.
Now, I anticipate the market to shift to bearish to alleviate the Coronavirus price hikes. Additionally, I do believe market makers are looking to trigger the stop losses of buyers at the red zones highlighted in the 15 minute. Historically, there had been many instances of spikes to hunt stop losses and a sudden reversal to hunt stop losses in the opposite direction.
My bias is still short on Gold and I believe 1560 is the target for the bear.