GOLD XAUUSD Putting on a Show !
Updated
Welcome and good day to all!
As can be seen in the chart, there are two possibilities that are showing itself:
1) Possible formation of a new descending channel, that will mean a reversal of the major uptrend!
2) Continuation of the major ascending channel, the descending channel formation is just part of the channel waves
I would place my money on the BULLS
Honestly this is what my friend calls "Putting on a show", where our job is to educatedly guess what other patterns GOLD SPOT will come up with.
Technical and Fundamental Analysis (BULLISH) :
- Historically, the uptrend support line (ascending channel white line) has always been held, with strong rebounds upon touching it --> Now it has very recently rebounded
- Fundamentals are bullish, with rising tensions between US-China trade wars along with the controversial Hong Kong security law imposed by China --> Rising tensions indicate more risks which drives investors towards risk hedges like GOLD and CRYPTO, means more BUYING PRESSURE
- We may in due time see more second wave pandemic counts increase rapidly, as these takes time to detect (Asymptomatic ppl infecting others cant be detected until an infection cluster shows up)
However, to watch for POSITIVE NEWS OF VACCINE RESULTS --> these will heavily reduce risk aversion and lead to GOLD SELL OFF
I expect these vaccine reports to be released near July (Testings take approx 4 months at least, with the big testings results ready by end of year 2020)
Short term Opportunities:
- TO BUY, watch for BREAKOUTS from resistance level 0.786 fib @ 1738
- TO SELL, watch for BREAKDOWNS from support level @ 1730
As always, trade carefully with stop loss orders and happy trading!
Feel free to like and follow if you enjoyed my ideas!
Best Regards,
GOLD D ROGER
A humble trader
As can be seen in the chart, there are two possibilities that are showing itself:
1) Possible formation of a new descending channel, that will mean a reversal of the major uptrend!
2) Continuation of the major ascending channel, the descending channel formation is just part of the channel waves
I would place my money on the BULLS
Honestly this is what my friend calls "Putting on a show", where our job is to educatedly guess what other patterns GOLD SPOT will come up with.
Technical and Fundamental Analysis (BULLISH) :
- Historically, the uptrend support line (ascending channel white line) has always been held, with strong rebounds upon touching it --> Now it has very recently rebounded
- Fundamentals are bullish, with rising tensions between US-China trade wars along with the controversial Hong Kong security law imposed by China --> Rising tensions indicate more risks which drives investors towards risk hedges like GOLD and CRYPTO, means more BUYING PRESSURE
- We may in due time see more second wave pandemic counts increase rapidly, as these takes time to detect (Asymptomatic ppl infecting others cant be detected until an infection cluster shows up)
However, to watch for POSITIVE NEWS OF VACCINE RESULTS --> these will heavily reduce risk aversion and lead to GOLD SELL OFF
I expect these vaccine reports to be released near July (Testings take approx 4 months at least, with the big testings results ready by end of year 2020)
Short term Opportunities:
- TO BUY, watch for BREAKOUTS from resistance level 0.786 fib @ 1738
- TO SELL, watch for BREAKDOWNS from support level @ 1730
As always, trade carefully with stop loss orders and happy trading!
Feel free to like and follow if you enjoyed my ideas!
Best Regards,
GOLD D ROGER
A humble trader
Note
Retouching support line (white), look for validation and REBOUND
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