XAUUSD | Perspective for the new week | Follow-up details
My bias on this pair remains bullish as activity returns into a critical zone identified as the key level at $1,800 - a psychological number. Since my last speculation on this pair, we all witnessed close to 5,000pips run before "profit takings" happened in the penultimate week which sent price crashing but last week's activity could not push price further down.
Market participants will probably wait for the US January Consumer Price Index (CPI) data, a report I think will have a significant effect on the yellow metal this week hence we might see the indecision in price action around the new Demand level in the form of a consolidation phase before a spike!
Tendency: Uptrend (Bullish)
Structure: Supply & Demand | Trendline
Observation: i. Between the month of September 2021 and mid-November 2021; the price of Gold moved north with approximately a 9% growth in value - a significant feat in recent time to signal a bullish momentum evolving behind the scenes as the $1,830 zone which has been a strong niche for sellers was finally broken to set a bullish tone in the market.
ii. After this significant breakout, the price has continued to break above the $1,800 level followed by multiple rejections as buyers prevent sellers from taking the price further down, a character that reveals buying power at this juncture in the market.
iii. And in the last 3 months, the Trendline drawn under pivot lows continues to hold price within its range to keep the hopes of buying opportunity intact.
iv. The $1,780 level have been keeping price "supported" since the beginning of the year -2022.
v. Now, with the identification of a new demand level around $1,780/1,800; I feel comfortable taking a long position above the key level with options of adding to my existing position at breakout/retest of $1,825 in the coming week(s).
vi. It is worthy to state here that, if we experience a break below $1,780 in the coming week which will also share a confluence with the breakdown of the Bullish Trendline, then a rejection of this Trendline should confirm a selling opportunity... Trade consciously!😊
You might also want to look at my previous perspective for referencing - see link below
Trading plan: BUY confirmation with a minimum potential profit of 10,000 pips.
Risk/Reward: 1:5
Potential Duration: 5 to 15days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates 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.
Market participants will probably wait for the US January Consumer Price Index (CPI) data, a report I think will have a significant effect on the yellow metal this week hence we might see the indecision in price action around the new Demand level in the form of a consolidation phase before a spike!
Tendency: Uptrend (Bullish)
Structure: Supply & Demand | Trendline
Observation: i. Between the month of September 2021 and mid-November 2021; the price of Gold moved north with approximately a 9% growth in value - a significant feat in recent time to signal a bullish momentum evolving behind the scenes as the $1,830 zone which has been a strong niche for sellers was finally broken to set a bullish tone in the market.
ii. After this significant breakout, the price has continued to break above the $1,800 level followed by multiple rejections as buyers prevent sellers from taking the price further down, a character that reveals buying power at this juncture in the market.
iii. And in the last 3 months, the Trendline drawn under pivot lows continues to hold price within its range to keep the hopes of buying opportunity intact.
iv. The $1,780 level have been keeping price "supported" since the beginning of the year -2022.
v. Now, with the identification of a new demand level around $1,780/1,800; I feel comfortable taking a long position above the key level with options of adding to my existing position at breakout/retest of $1,825 in the coming week(s).
vi. It is worthy to state here that, if we experience a break below $1,780 in the coming week which will also share a confluence with the breakdown of the Bullish Trendline, then a rejection of this Trendline should confirm a selling opportunity... Trade consciously!😊
You might also want to look at my previous perspective for referencing - see link below
Trading plan: BUY confirmation with a minimum potential profit of 10,000 pips.
Risk/Reward: 1:5
Potential Duration: 5 to 15days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates 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
