First, and as usual, lets start with the traditional recap...
The following position has been reached and is coming around only AFTER Buyers have finished their move: respectively, the swing up into 1970/2000, which interlocked with profit taking and the Covid unwind, demanded an attack from sellers by means of switching sides. A flawless swing with a competitive salary.
When most thought the sky is the limit, we kept our cool and started to switch sides with some counterplea. As usual, you do not do all of the work charting, modelling, finding areas of value to unload etc just to walk away.... you also need to be ready to attack in the other direction, otherwise energy is wasted. For those wanting to track the charts and examples they can be found here:
Thus we had the "mysterious" profit taking and unwind, the manoeuvre from sellers has been very fluid and is creating the most pleasing ABC effect when you look through the weekly.
Of course, this leg is already well underway, so for those looking to make use of the momentum from sellers then we need to look for fresh areas which can be quite fair value, we shall rather call semi-cheap because the leg is more than active.
The 1775 previous support has become resistance for our opponent (and if we are able to test, then we know buyers are "wasting their time" there). Such a move should be faded, never play without being aware that you are sacrificing a certain effectiveness by not selling the steel resistance at the top of the range but we are preventing our opponent and rendering them with more difficulty. If we recognise that any attempt of a breakup from out opponent is not a genuine one (i.e it does not lead to the freeing of the structure) then it would be highly uneconomical to not add offers to the basket. Failing that, a break below the 1725 lows will trigger a waterfall into the 'C' target located at 1520.
In the above title, I mentioned Yields, the reason this is abundantly clear. Since this is very characteristic when bond bears take control, we clear the initial 1.45 target, now 1.55 is in the crosshairs with 1.62 above, and higher yields will continue to weight heavily on Gold prices.
Comment
⋅
The 1775 previous support has become resistance for our opponent .... all filled..... Good luck
i did sell after nfp September, and close 1730. now no position ☹️.. still wondering hot zone to put the bullet.
ForexTrendline
⋅
Great analysis, thanks for sharing! Here's what we see
PCX_Assets
⋅
@ForexTrendline, I agree with your theory; however, the gold has consolidated in this area for too long and it might start dropping with the NFP news. I doubt if it will make it to the 1775 area.
Mihai_Iacob
⋅
Great charts and explanations
Thanks for your work
UnknownUnicorn4430035
⋅
Excellent! An example of a detailed and well-reasoned analysis! Thank you so much for sharing! I wish you all the best! 🙌