Dear traders,
For those who followed my forecast last week, I was expecting a correction to the current bullish trend . I was right, and we largely hit the correction target of 1870. What was unexpected was the speed of the drop. I regretfully did not put 1850-55 as the target, as that is the most important support level that bulls must pay attention to. Friday's Asian time has proven that 1868-1870 is a strong support level though.
Overall picture:
- I remain very bullish in gold . this is the "buy the dip" opportunity, and buyers should seize this opportunity.
- We have likely see the lows of the wave 4 corrective wave. corrected to approx. 0.618 of wave 3.
- bulls will have a target set for 1960 level.
Things to be aware of:
- i expect the price to be choppy if we maintain below 1896 resistance level . There is a possibility where bears will send gold back to 1860 level. (See bottom yellow uptrend line)
- we may have a decent pull back, but i don't expect this to drop below 1880. Max perhaps 1886. I think it's safe to long at 1888. Below 1886, we are opening up possibility to dip back to 1870. Below 70, we might see 1855 again to challenge the bull yellow trend.
- If we dip below 1855. I will be very bearish.
- bulls MUST break above 1900 and hold, to confirm the next bull leg.
- Last week's structure can be read as a start of a bear trend, with a head & shoulder formed around the purple neckline. So ideally, we will want to see a break above 1900 and the purple neckline to be confident in the bullish move. (we can adjust our stops accordingly)
- Above 1900, we will also rejected the green down-trend. Our next target will finally be 1920.
- At 1920, we will be looking at a green megaphone structure. We will likely have some pull backs. But bulls at this point will have a strong presence, and will be ready to blast to 1959.
Key price levels for this week:
Immediate level - 1888.
Immediate upside resistance to break - 1896 - 1901
warning for bulls - 1880.
near term bullish target - 1920-21
final target - 1959 - 60
finally about DXY:
- DXY has a very good correlation with gold .
- news show positive signs for dollar
- dollar is showing technical strengths.
- It looks like dollar is ready for a bullish cycle.
- can gold hit 2.1k target? (perhaps we can also ask the same for DXY . can DXY break below 89?)
We will need to continually monitor the performance of DXY .
As for gold , I see this bullish move as wave 5. meaning, after we hit our final target (possibly 1959), we will likely have a huge correction to come.
For those who followed my forecast last week, I was expecting a correction to the current bullish trend . I was right, and we largely hit the correction target of 1870. What was unexpected was the speed of the drop. I regretfully did not put 1850-55 as the target, as that is the most important support level that bulls must pay attention to. Friday's Asian time has proven that 1868-1870 is a strong support level though.
Overall picture:
- I remain very bullish in gold . this is the "buy the dip" opportunity, and buyers should seize this opportunity.
- We have likely see the lows of the wave 4 corrective wave. corrected to approx. 0.618 of wave 3.
- bulls will have a target set for 1960 level.
Things to be aware of:
- i expect the price to be choppy if we maintain below 1896 resistance level . There is a possibility where bears will send gold back to 1860 level. (See bottom yellow uptrend line)
- we may have a decent pull back, but i don't expect this to drop below 1880. Max perhaps 1886. I think it's safe to long at 1888. Below 1886, we are opening up possibility to dip back to 1870. Below 70, we might see 1855 again to challenge the bull yellow trend.
- If we dip below 1855. I will be very bearish.
- bulls MUST break above 1900 and hold, to confirm the next bull leg.
- Last week's structure can be read as a start of a bear trend, with a head & shoulder formed around the purple neckline. So ideally, we will want to see a break above 1900 and the purple neckline to be confident in the bullish move. (we can adjust our stops accordingly)
- Above 1900, we will also rejected the green down-trend. Our next target will finally be 1920.
- At 1920, we will be looking at a green megaphone structure. We will likely have some pull backs. But bulls at this point will have a strong presence, and will be ready to blast to 1959.
Key price levels for this week:
Immediate level - 1888.
Immediate upside resistance to break - 1896 - 1901
warning for bulls - 1880.
near term bullish target - 1920-21
final target - 1959 - 60
finally about DXY:
- DXY has a very good correlation with gold .
- news show positive signs for dollar
- dollar is showing technical strengths.
- It looks like dollar is ready for a bullish cycle.
- can gold hit 2.1k target? (perhaps we can also ask the same for DXY . can DXY break below 89?)
We will need to continually monitor the performance of DXY .
As for gold , I see this bullish move as wave 5. meaning, after we hit our final target (possibly 1959), we will likely have a huge correction to come.
Buy zone range is 1888 - 1892.