If the price of gold does not make a new higher high and remains within the falling channel with resistance in MA200, then we can expect a further price drop, and maybe we see a new lower low.
it may not be good to short gold as we saw heavily rejection around the support level
and the idea of gbpusd to long (near major support too)
usually they quite go the same way
so wait and see gold should not go down too far
Viktor_FX
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@kontualeks17, agree with you. Let us suppose some level of 1720-1740. What is your opinion?
Diamond9696
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@Viktor_FX, sir for me, wait and see should be good strategy for gold
with the trend yes, short would be more advantage but it's not the good time to execute
i don't think the market will give us easy trade
and if you see dollar index it faces strong resistance too (if breaking yes my view may change)
so i might not be answer your question like you expect but i think it should not go so far like 1720-1740
Viktor_FX
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@kontualeks17, indeed. The question is, what do people prefer more now? Gold or $? ))
Diamond9696
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@Viktor_FX, actually, quite not answer your question again
for my point of view only, as people who use technical analysis, we are isolation from opinion
i myself try not to combine fundamental and technical together because i don't have any expertise on fundamental + it should not be combined as we stay on rule that "market discounts everything"
so if you ask me what do people prefer more now > if i answer you one answer that is my opinion ex. $ or gold
i cannot do research the whole world to answer what people prefer +
the most important thing to consider is "it is not necessary for example people prefer dollar and that should make dollar to rise > that is fundamental
for the use of chart if we see it's uptrend it goes up that is technical until it "confirms" not to do like that
so my recommendation is to look at the chart carefully + try to decode the chart carefully too instead of thinking about opinion
and don't forget the core 3 rules
1. market discounts everything > is the what i mention
2. cycle always repeats
3. market moves in trend > yes it's downtrend but for weekly chart is bullish so contrast > i wait and see > maybe i may be wrong not to have short position but i don't lose anything or make profit anything too
Viktor_FX
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@Diamond9696, your detailed answers, recommendations and core 3 rules are impressive. Thanks! From time to time, it is interesting to conduct a statistical survey of familiar people who have their own business. I just ask what they would invest their money in - dollar or gold. This year, gold is steadily winning 75 %. Try it yourself. )
Diamond9696
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@Viktor_FX, lastly, viktor that may not quite relevant to reading chart but good to know (maybe you known)
when you see many many people (which seems not to be big player or insider) talk the same way ie. gold will drop
almost 80-90% of tradingview chart says
you should be aware that the market is full of fear > big player can take control
if i tell you more that the time when gold move to 1680 it has no volume > big player push the market to floor level to accumulation it
that should be the result of today (you can see it on an hourly chart)
actually, when bitcoin as around 30k you might hear the it will come to 20k and triangle was formed and broken and today it goes to 50 k
that is quite the same
conversely, when we saw people are very optimist around something i.e. dow jones today
you should keep in mind that the top is coming soon
because the big player cannot distribute their stock if no retailer want to buy
another thing to thinking of when analyse the chart is to be confirmed by one other
assume that gbpusd eurusd and gold quite going the same way and gbp eur near major support
so that it should not go down? so as gold
another way is to check the one who is the opposition size like USDJPY, it also need the resistance too
so it should'n go up immediately because to break up the resistance it need times
i think it may be useful to you
nice to know you see you
Viktor_FX
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@Diamond9696, I appreciate your wise explanations - your position is clear. However, as for the dollar specifically, at the moment we do not know the true potential. The dollar knows how to surprise. I fully understand and accept the assumption about the growth of gold prices, but for now the status of the dollar is being updated. Many transactions around the world are being prepared and settled in USD now more often than in other currencies. In any case, I respect your point of view and am very grateful for the comments. Wish you good health and profitable trading!
and the idea of gbpusd to long (near major support too)
usually they quite go the same way
so wait and see gold should not go down too far