SpartaFX1
Long

GOLD Analysis next week

OANDA:XAUUSD   Gold Spot / U.S. Dollar
While trade tensions have eased significantly in recent months, coronavirus has become the latest source of instability plaguing businesses and investors. The outbreak has certainly become worse since the current meeting has about 76,000 cases in China, 433 in South Korea, 109 in Japan and 15 in the United States.
Preliminary evidence suggests that the Japanese economy may face challenges again at the present time. Japan's exports to China account for about 3% of Japan's total GDP, compared with the same figure from the US of only 0.5% of GDP, suggesting that the Japanese economy could be significantly more affected by outbreak of coronavirus in China.
Gold has been up in line with the Sparta FX assessment process since last week, it seems that there is a rather close relationship between gold price and bank deposit & money Velocity. Last week's evidence for gold has risen nearly 70 (700pip). But to confirm this colleration, the gold must be verified before continuing to increase.
All bigboys are waiting for prices to return to the beautiful regions for them to continue buying, but with prices last week reaching the highest level in 1649, the highest level has been established in the last 7 years. Last week, China started the race to reduce interest rates, then the gold price continued to rise 38 prices from 1611 to 1648. The Japanese bond bond yeild curve naturally decreased, so it was the basis for the premonition of the JPY is about to increase this is also a premonition basis and sparta FX said GOLD will continue to increase in the near future.

Technical analysis
GOLD price last week went very well with the Sparta FX comment, specifically, the gold price after hitting 1580 has risen sharply again. With the increase to 700 pips of continuous increase in a week, 5 D1 candles are all real body. This shows that the buyer (engufing, mazubozu) the highest milestone in the last 7 years partly reflects the psychology of investors who are concerned, so the gold price increase is also understandable. in the long term, only from the 1267 level to 1650 level, the gold has increased by nearly 4000 pips, only one deep decline from 1556 to 1446 is more than 1000pip, that is, only the decrease of 1 is 4 times the increase of GOLD . The question is very sustainable.
With the weekly candle closing above 161x, the next medium term uptrend is set to be 1680-1700. At the moment we will not risk buying, expecting there will be a reasonable buy adjustment we wait to return to 50% candle last week belonging to fibo 61.8
GOLD buy around 1611-1613 SL 1600 TP 1636 TP2 1670

Comments

it wont drop, bear trap
+1 Reply
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