a daily price action after hour update - gold
Good evening and i hope you are well.
Markets want green across the board and that means acceptance. Bears can’t deny it because they are not doing anything to stop this so higher prices are the higher probability here, no matter how overbought everything is. The only possibility i can dream up currently is that this quarter was so utterly overbought, that we could see profit taking into end of quarter and that could hit many profit taking stops along the way but that is so far fetched right now. But then again, so is this rally.
Gold
bull case: 67 points made on Wednesday, that’s something you don’t see that often in gold. Today was bigger profit taking but market did a perfect breakout retest and bulls bought it. You could draw a triangle here and a 50% pullback of the Wednesday move is pretty much the middle of it. Close is close enough for markets. Means market is in breakout mode for new direction. Anything above 2200 is not accepted and sold but bears could not reverse the breakout. Will see tomorrow where this is heading next.
bear case: Bears got a perfect retest of yesterdays breakout and bulls bought it. Not good for the bears. I mentioned market is in breakout mode and bears can only dream of trading below 2150 again. As long as bull trend lines hold and market trades above the daily 20ema which is around 2150, this is bullish.
short term: Neutral here - want to see the triangle play out and get a clear breakout to either side with follow through. Can’t really see that happening tomorrow but i’m open to the possibility. Range 2160 - 2200
medium-long term: Very high probability of reaching 2300 and there i will look how the market behaves. We could be entering the equities off and commodities on cycle. Very long term Gold was nowhere near equities and that’s why betting on gold entering a bullish cycle to 3000/4000 is very low probability. Higher probability is betting on a higher high here inside a big trading range 1700 - 2200 and we will trade down over the next months. I would not enter long term positions here. — unchanged
trade of the day: 7 1h candles with wicks above 2210. Markets only try one thing so often until they try something different. Obvious short Bar 10 as it formed. Bar 12 had a big enough tail to set the stop 1 tick above it.
Markets want green across the board and that means acceptance. Bears can’t deny it because they are not doing anything to stop this so higher prices are the higher probability here, no matter how overbought everything is. The only possibility i can dream up currently is that this quarter was so utterly overbought, that we could see profit taking into end of quarter and that could hit many profit taking stops along the way but that is so far fetched right now. But then again, so is this rally.
Gold
bull case: 67 points made on Wednesday, that’s something you don’t see that often in gold. Today was bigger profit taking but market did a perfect breakout retest and bulls bought it. You could draw a triangle here and a 50% pullback of the Wednesday move is pretty much the middle of it. Close is close enough for markets. Means market is in breakout mode for new direction. Anything above 2200 is not accepted and sold but bears could not reverse the breakout. Will see tomorrow where this is heading next.
bear case: Bears got a perfect retest of yesterdays breakout and bulls bought it. Not good for the bears. I mentioned market is in breakout mode and bears can only dream of trading below 2150 again. As long as bull trend lines hold and market trades above the daily 20ema which is around 2150, this is bullish.
short term: Neutral here - want to see the triangle play out and get a clear breakout to either side with follow through. Can’t really see that happening tomorrow but i’m open to the possibility. Range 2160 - 2200
medium-long term: Very high probability of reaching 2300 and there i will look how the market behaves. We could be entering the equities off and commodities on cycle. Very long term Gold was nowhere near equities and that’s why betting on gold entering a bullish cycle to 3000/4000 is very low probability. Higher probability is betting on a higher high here inside a big trading range 1700 - 2200 and we will trade down over the next months. I would not enter long term positions here. — unchanged
trade of the day: 7 1h candles with wicks above 2210. Markets only try one thing so often until they try something different. Obvious short Bar 10 as it formed. Bar 12 had a big enough tail to set the stop 1 tick above it.