Why Gold's "resistance" wasn't sustained | Move Explained
Good Morning guys how is everyone today, Merry Christmas \ Seasons Greetings to you all. Today is Friday 22nd December, 2023 - Literally the weekend before Christmas. It's the Eve of the Eve of the Eve of Christmas lol. But jokes aside I want to quickly discuss why I think the "resistance" (Green zone) wasn't sustained.
Here on the 4H we can we that there is a beautiful level right around 2053 ish (green zone) that would have seemed to be held since early December, having only been broken once..or so you thought. The reason why I am putting "resistance" in inverted commas is because I believe even the terminology "Resistance" is used to induce traders.
Let's be honest here for a quick second, don't you think there would be a massive amount of sellers coming into the market at this level out of belief that the "resistance" is holding and is strong? Mistake - Price creates these zone which means the zone itself cannot be the thing to control price..it's the other way around. If price created it price can destroy it - Simple
In an earlier analysis, Link here -
I said that the current Monthly candle couldn't be trusted at the time because
1. It hadn't closed yet (and still hasn't closed)
2. It was red, rejecting the high in a bull market
If you were to look at the monthly timeframe now, you'd realize that the monthly candle has changed its appearance yet again (AND STILL HASN'T CLOSED)
The reason I am bringing this up is because, many traders use the current candle as part of their analysis and in my opinion it is extremely dangerous to do this as anything can happen between now and when that candle closes
Anyway, back to the 4H we can see that gold surged through that "resistance" with relative ease, Granted what I thought could occur in my previous analysis was wrong, it prevented me from taking any trades so in this light I don't mind being wrong to be honest
But now I want to cover what I think is likely to occur next
Seeing as what I originally thought would happen, which is where the dealer would drop lower, take out all buyers from the low then climb the market higher and higher..didn't happen.
Looking at the current data we have a new micro zone above the "resistance".
What does this zone represent (to me)? My answer to that is "late buyers". Buyers who FOMO'd, meaning their stops may be below either the (turquoise zone or the green zone) (red lines)
Again it is entirely possible that the dealer does not spike these levels at all and simply continue to buy the market from this point but what I'd like to see is something like this
Either the purple or the turquoise paths play out. Like I would have mentioned before however I am not trading for the rest of the year. The purpose of this analysis is for 2 (two) things really.
1. Keep everything sharp between my ears
2. Keep good track of what is happening so I can understand the flow of everything when I do come back out
That being said - this is the end of this analysis here. If I don't send any update after this (IF) Merry Christmas \ Happy Holidays to you and your family.
See you guys soon
Here on the 4H we can we that there is a beautiful level right around 2053 ish (green zone) that would have seemed to be held since early December, having only been broken once..or so you thought. The reason why I am putting "resistance" in inverted commas is because I believe even the terminology "Resistance" is used to induce traders.
Let's be honest here for a quick second, don't you think there would be a massive amount of sellers coming into the market at this level out of belief that the "resistance" is holding and is strong? Mistake - Price creates these zone which means the zone itself cannot be the thing to control price..it's the other way around. If price created it price can destroy it - Simple
In an earlier analysis, Link here -
1. It hadn't closed yet (and still hasn't closed)
2. It was red, rejecting the high in a bull market
If you were to look at the monthly timeframe now, you'd realize that the monthly candle has changed its appearance yet again (AND STILL HASN'T CLOSED)
The reason I am bringing this up is because, many traders use the current candle as part of their analysis and in my opinion it is extremely dangerous to do this as anything can happen between now and when that candle closes
Anyway, back to the 4H we can see that gold surged through that "resistance" with relative ease, Granted what I thought could occur in my previous analysis was wrong, it prevented me from taking any trades so in this light I don't mind being wrong to be honest
Looking at the current data we have a new micro zone above the "resistance".
What does this zone represent (to me)? My answer to that is "late buyers". Buyers who FOMO'd, meaning their stops may be below either the (turquoise zone or the green zone) (red lines)
1. Keep everything sharp between my ears
2. Keep good track of what is happening so I can understand the flow of everything when I do come back out
That being said - this is the end of this analysis here. If I don't send any update after this (IF) Merry Christmas \ Happy Holidays to you and your family.
See you guys soon
