Never underestimate the power of a momentum move... either up or down!
Because once the momentum train starts going its very hard to stop it and it will keep going much further than most have anticipated so don't be that trader that try to predict the reversal!
This video explains more!
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As the virus begins to spread in Aisa (South Korea, Taiwan, Singapore, Japan and more..) the momentum could SERIOUSLY increase and the fact that we see XAUUSD really pushing up (from no major news) means that the BIG BOYS are buying it early... on the other hand yesterdays big move on indices in the New York sessions also means that some big sellers took positons on shorting DAX, US30 and the rest!
Great analysis Dennis, thanks for sharing! Do you think Gold will open start and sharply keep going up over $1650 pushing on to $1700 in this current momentum?...or feel there will be a pullback in the market?
Looking at the weekly and daily charts all I see is price moving to the 1794.750 level as the momentum is really strong and we need to take into account the fact that Japanese (and Asian in general) investors are moving from the JPY as a safe haven and moving to XAUUSD (gold) because Japan and Asia is in big trouble at the moment, I think the momentum should remain bullish on GOLD, and it could easily continue moving further up!
But the general resistances, using the past, we get 1794.750 and then 1920.240, both of these can be reached with the current Coronavirus problems/challenges.
I would be bullish on this and lock in any profits and trail it. Then wait for entries on 4H and 1H to go long. This trend is bullish and can really bring solid profits.
PrimedGroup
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PrimedGroup
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@jngforex, sorry I didnt answer your question directly, yes I would believe Gold could/should continue up from the early trading sessions in the new week!
PrimedGroup
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@jngforex, did my reply help with your decision making?
jngforex
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@PrimedGroup, My apologies as I was so busy yesterday but yes your analysis and reply was excellent, many thanks indeed.