darcsherry

XAUUSD | Perspective for the new week | Follow-up details

Long
OANDA:XAUUSD   Gold Spot / U.S. Dollar
Over 5,000pips in our direction since my last publication on the yellow metal ( see link below for reference purposes) and it appears we are at another juncture to take advantage of the rally. The continuation sequence of this bias can be related to the significant Breakout of the Bearish Trendline during the course of last week trading session after a two week old of indecision (consolidation phase) around the identified New demand level around $1,750 zone (a psychological level).

Tendency: Uptrend ( Bullish )
Structure: Supply & Demand | Trendline | Reversal pattern (Breakout)
Observation: i. Price traded below the Bearish Trendline in the last 30 days (3rd of Sep - 5th of Oct 2021) before getting caught up in a dilemma of Bearish continuation in recent weeks.
ii. Since the beginning of the new month (1st - 11th Oct 2021); we witnessed a consolidation phase within $1,770 & $1,745 hereby emphasizing the indecision in the market as participants looked forward to economic release for greenlight.
iii. It is obvious that after finding a bottom at a Major Demand zone @ $1,720 - a level that has a strong memory for buying power since mid last year (2020 - check weekly chart), price continued to find higher highs which culminated in a significant Breakout of Bearish Trendline on the 12/13th Oct 2021.
iv. The reaction to Consumer Price Index release was a positive signal for buyers of Gold as the actual figure equals expectations.
v. The new Trendline ( Bullish ) drawn under pivot lows reveals a change in direction of price in the last 15days as the clamour for a Bullish bias takes shape.
vi. Even as we await a confirmation at this juncture, the early hours/days of the new week might see a plunge into the new demand level indicated on the chart and if, on the contrary, I shall be looking forward to taking advantage of the new rally above the temporary level @ $1,765.
vii . An opportunity to add to our existing position should present itself at a Breakout/Retest of Key level @ $1,780... Trade consciously!😊
Trading plan: BUY confirmation with a minimum potential profit of 5,000 pips.
Risk/Reward: 1:5
Potential Duration: 10 to 15days

NB: This speculation might be considered to make individual decisions on the lower timeframe.

Watch this space for updates as price action is been monitored.


Risk Disclaimer:
Margin trading in the foreign exchange market (including commodity trading, CFDs, stocks etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.