Every system is governed by control mechanisms; that's exactly where structure resides. It is your responsibility to familiarise yourself with market structure in order to gain clarity over price action.
The markets can only do so much. It goes up, it goes down and it consolidates - when in consolidation a trend continuation or trend reversal will occur.
As pictured, the markets have changed from conditions of an uptrend to for the first time in 5 years creating a LH and LL after creating ATH's.
Using the open and high of August 2020 as a region of supply, I am currently observing microstructure (daily timeframe activity) so observe whether conditions cater to that of a bearish trend or not.
$XAU is extremely overbought at the moment - high $XAU prices are never good for the dollar. As nations go into recovery mode of what felt like an eternity of a global pandemic, we will see a steady decline in $XAU price.
I have marked the high of January 2021 (the LH labelled on the chart from last year) @1959.33 as a level that I would like for this months close to respect. Should the monthly close above the aforementioned level I will use the high of its candlestick to test the probability of strong sorts as we enter Q2 2022.
My target for the coming months is $1710.00; marked on the chart as the red zone below current price. I will be paying strong attention to microstructure (daily timeframe activity) and assume the mechanisms of a bearish trend until met by macro support.
The markets can only do so much. It goes up, it goes down and it consolidates - when in consolidation a trend continuation or trend reversal will occur.
As pictured, the markets have changed from conditions of an uptrend to for the first time in 5 years creating a LH and LL after creating ATH's.
Using the open and high of August 2020 as a region of supply, I am currently observing microstructure (daily timeframe activity) so observe whether conditions cater to that of a bearish trend or not.
$XAU is extremely overbought at the moment - high $XAU prices are never good for the dollar. As nations go into recovery mode of what felt like an eternity of a global pandemic, we will see a steady decline in $XAU price.
I have marked the high of January 2021 (the LH labelled on the chart from last year) @1959.33 as a level that I would like for this months close to respect. Should the monthly close above the aforementioned level I will use the high of its candlestick to test the probability of strong sorts as we enter Q2 2022.
My target for the coming months is $1710.00; marked on the chart as the red zone below current price. I will be paying strong attention to microstructure (daily timeframe activity) and assume the mechanisms of a bearish trend until met by macro support.