In as much as the set-up on my daily chart predicts a bearish bias, a holistic perspective from the weekly chart states otherwise as the appearance of a Hammer candle doing a sharp rejection of the Bearish trendline which was broken at the beginning of May 2021 signifies a hidden momentum building behind the scenes by the buyers.
The demand for the precious metal - gold managed to increase throughout the last week (closing above key level @ $1,760 level) despite the broad-based USD strength. As participants look for fresh clues regarding the timing of the beginning of reductions in the Fed’s asset purchases, I anticipate a consolidation phase ahead of Chairman Powell’s speech at the Jackson Hole Symposium on Thursday which could be a major bullish determinant on this pair in the next couple of weeks as gold re-captures her status as a safe haven.
Tendency: Uptrend (Bullish)
Structure: Breakout | Supply & Demand | Trendline | Reversal pattern (61.8% retracement)
Observation: i. Since hitting a peak @ $2,076 in August 2020; price continued to spiral downward.
ii. The visual representation of the line drawn over pivot highs reveals the prevailing direction and a clearer picture of the price trend over the last year (since August 2020).
iii. A significant Breakout of this Trendline in May 2021 reveals that a change in trend is right at the corner as the price continues to hold above Key level @ $1,760 in the last two months.
iv. $1,680 - a significant zone that has had memory for buying opportunities (Demand zone) since April 2020 was finally tested one more time during the penultimate week resulting in the appearance of a Hammer candle.
v. The Hammer candlestick shows us that sellers came into the market during the period but by the close of the week the selling had been absorbed and buyers had pushed the price back to close above Key level @ $1,760... This feat reveals an underlining buying pressure building in the background in this area (this can also be observed during last week trading session).
vi. We can not ignore the selling pressure at $1,817.800 which has been negating the buyers attempt to break above in the last month and if this persists in the coming week, we might see buyers surrender to position themselves at a better price (probably below key level) to take over for a rally continuation.
vii. In this regard, above key level $1,760 remains a yardstick for buying opportunity for me and a successful breakout/retest of $1,817.800 will confirm bullish stance hereby welcoming an opportunity to add to our exiting positions.
viii. Early on in the new week, we "might" see price do a plunge to as low as $1,720 and transpose into a consolidation phase to incite a rally continuation... Trade consciously!😊
Trading plan: BUY confirmation with a minimum potential profit of 2,500 pips.
Risk/Reward: 1:5
Potential Duration: 20 to 40days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
This is a long-term perspective and you might watch this space for speculation on lower time frames 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.
The demand for the precious metal - gold managed to increase throughout the last week (closing above key level @ $1,760 level) despite the broad-based USD strength. As participants look for fresh clues regarding the timing of the beginning of reductions in the Fed’s asset purchases, I anticipate a consolidation phase ahead of Chairman Powell’s speech at the Jackson Hole Symposium on Thursday which could be a major bullish determinant on this pair in the next couple of weeks as gold re-captures her status as a safe haven.
Tendency: Uptrend (Bullish)
Structure: Breakout | Supply & Demand | Trendline | Reversal pattern (61.8% retracement)
Observation: i. Since hitting a peak @ $2,076 in August 2020; price continued to spiral downward.
ii. The visual representation of the line drawn over pivot highs reveals the prevailing direction and a clearer picture of the price trend over the last year (since August 2020).
iii. A significant Breakout of this Trendline in May 2021 reveals that a change in trend is right at the corner as the price continues to hold above Key level @ $1,760 in the last two months.
iv. $1,680 - a significant zone that has had memory for buying opportunities (Demand zone) since April 2020 was finally tested one more time during the penultimate week resulting in the appearance of a Hammer candle.
v. The Hammer candlestick shows us that sellers came into the market during the period but by the close of the week the selling had been absorbed and buyers had pushed the price back to close above Key level @ $1,760... This feat reveals an underlining buying pressure building in the background in this area (this can also be observed during last week trading session).
vi. We can not ignore the selling pressure at $1,817.800 which has been negating the buyers attempt to break above in the last month and if this persists in the coming week, we might see buyers surrender to position themselves at a better price (probably below key level) to take over for a rally continuation.
vii. In this regard, above key level $1,760 remains a yardstick for buying opportunity for me and a successful breakout/retest of $1,817.800 will confirm bullish stance hereby welcoming an opportunity to add to our exiting positions.
viii. Early on in the new week, we "might" see price do a plunge to as low as $1,720 and transpose into a consolidation phase to incite a rally continuation... Trade consciously!😊
Trading plan: BUY confirmation with a minimum potential profit of 2,500 pips.
Risk/Reward: 1:5
Potential Duration: 20 to 40days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
This is a long-term perspective and you might watch this space for speculation on lower time frames 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.
Trade smart. Trade consciously
