Gold: what's behind impulse 1 and 2
Hi Guys,
This 4 hour chart.N2 follows previous daily chart N.1.
The idea is to provide a technically correct structure that follows the move commenced at 0 (ZERO).
Key factors that supported Gold into 0 (ZERO) for the breakout are:
1) Deterioration of US China negotiations that entered a stalemate at the beginning of May;
2) Arising tensions in the Middle East Mid-May;
3) Worries over a No-Deal Brexit gets real when Theresa May announces she is stepping down on May 24th (officially on June 7h).
These are IMHO the three Key Factors that led Gold into 0 (ZERO) and generated the breakout of the handle. 0 (ZERO) = c in below chart (the end of the handle)
The meeting of the FED happend after, on June 19th. This factor triggered impulse 2 as the FED statement induced the market to expect a rate cut.
TO NOTE: These expectations are in contrast with FED posture since January this year. PAUSE mode. The shift was induced by deteriorating wording in the FED statement plus dovish comments by Chairman Powell. When FED members expressed cautiosness in the days following the meeting Gold was already at 1440.
QUESTION: Is this run completed?
For additional infos about Gold please refer to the related ideas linked at the end of this post.
Thank you for your support and for sharing your ideas.
Disclaimer:
Please note that I am not a professional trader and these are my personal ideas only. The information contained in this presentation is solely for educational purposes and does not constitute investment advice. The risk of trading in securities markets can be substantial. You should carefully consider if engaging in such activity is suitable to your own financial situation. Cozzamara is not responsible for any liabilities arising from the result of your market involvement or individual trade activities.
This 4 hour chart.N2 follows previous daily chart N.1.
The idea is to provide a technically correct structure that follows the move commenced at 0 (ZERO).
Key factors that supported Gold into 0 (ZERO) for the breakout are:
1) Deterioration of US China negotiations that entered a stalemate at the beginning of May;
2) Arising tensions in the Middle East Mid-May;
3) Worries over a No-Deal Brexit gets real when Theresa May announces she is stepping down on May 24th (officially on June 7h).
These are IMHO the three Key Factors that led Gold into 0 (ZERO) and generated the breakout of the handle. 0 (ZERO) = c in below chart (the end of the handle)
The meeting of the FED happend after, on June 19th. This factor triggered impulse 2 as the FED statement induced the market to expect a rate cut.
TO NOTE: These expectations are in contrast with FED posture since January this year. PAUSE mode. The shift was induced by deteriorating wording in the FED statement plus dovish comments by Chairman Powell. When FED members expressed cautiosness in the days following the meeting Gold was already at 1440.
QUESTION: Is this run completed?
For additional infos about Gold please refer to the related ideas linked at the end of this post.
Thank you for your support and for sharing your ideas.
Disclaimer:
Please note that I am not a professional trader and these are my personal ideas only. The information contained in this presentation is solely for educational purposes and does not constitute investment advice. The risk of trading in securities markets can be substantial. You should carefully consider if engaging in such activity is suitable to your own financial situation. Cozzamara is not responsible for any liabilities arising from the result of your market involvement or individual trade activities.
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