XAUUSD - Responding to End-of-years dovishness
Alright guys, today we are going to highlight some very important price zones pertaining to the possible goals of the price movement of Gold against USD. What we have witnessed is the ease in monetary policy of the federal reserve following up with the announcement of easing up on the aggressive interest rate hikes for the last quarter and first FOMC of the first quarter of the next year 2023. The chart has returned us a perfect double bottoms contributing to the perfect reversal with targets in the range of 1786-1806. We have managed to hit 1786 once and returned to the Double bottoms neckline at 1732 failing to break it and bouncing right off it (Since we failed to close a daily candle below it). Now here are a few zones you should be monitoring for the next couple of weeks:
1- 1732 (if we failed to hit 1786-1806 and returned to 1732 and consequently break it, we will be having an inverted cup and handle situation leading us back to 1680s range and possibly 1610s as well).
2- 1786 to 1806 (This is by far the most important supply zone for gold, we break it we are heading to target zone 2 that terminates at 1882).
Analysis (Tech and Fundamental):
1- Double bottoms confirmed as we broke 1732
2- 1732 retested and bounced the price which is a good news for bulls
3- Our lower Darvas box (green) also had the neckline at 1732, we broke right out of it, indicating towards further higher levels
4- Our daily chart is above the cloud zone now, which also tells us that the trend has turned bullish for now (invalidating it requires breaking lower than 1680, as of now since clouds are dynamic and levels keeps changing)
5- The big M pattern on monthly is still valid and invalidates if price breaks higher than 2075, we will see about it if we are there
6- Bears have a chance to nail to perfect double tops from 1780s range and breaking 1732 so I would be cautious to buy between 1786 and 1806
P.s. if we break higher than 1806, I am buying without conscience lol
7- It is a very strong bullish monthly candle for the current month of November 2022, so we can expect the long awaited monthly frame correction (possible reversal) is finally here
That is all folks, best of luck and happy trading :-)
1- 1732 (if we failed to hit 1786-1806 and returned to 1732 and consequently break it, we will be having an inverted cup and handle situation leading us back to 1680s range and possibly 1610s as well).
2- 1786 to 1806 (This is by far the most important supply zone for gold, we break it we are heading to target zone 2 that terminates at 1882).
Analysis (Tech and Fundamental):
1- Double bottoms confirmed as we broke 1732
2- 1732 retested and bounced the price which is a good news for bulls
3- Our lower Darvas box (green) also had the neckline at 1732, we broke right out of it, indicating towards further higher levels
4- Our daily chart is above the cloud zone now, which also tells us that the trend has turned bullish for now (invalidating it requires breaking lower than 1680, as of now since clouds are dynamic and levels keeps changing)
5- The big M pattern on monthly is still valid and invalidates if price breaks higher than 2075, we will see about it if we are there
6- Bears have a chance to nail to perfect double tops from 1780s range and breaking 1732 so I would be cautious to buy between 1786 and 1806
P.s. if we break higher than 1806, I am buying without conscience lol
7- It is a very strong bullish monthly candle for the current month of November 2022, so we can expect the long awaited monthly frame correction (possible reversal) is finally here
That is all folks, best of luck and happy trading :-)
Trade closed: target reached
Comment:
We got a daily tf hanging man near 1800, but I wouldnt trust it too much since weekly is strong bullish at the moment. 1806 breakout point is very close so I would like to pause trading Gold for some time here and wait for a clear breakout. We need a daily candle above 1806 to expect next target zone. Best of Luck!
Comment:
alright guys I think this is it, we still havent broken through 1806 and now we are having a bearish pennant situation bolstering an intraday short bias today:
Comment:
Unfortunately, we failed to break 1806 again this week, therefore, we were unable to take any further long entry to target any higher zone.
