Last week I made a review on gold market and my trading activities here. During the review, I predicted that gold market might touch $3900 price level, It was already weekend when I made this review and market had closed then. But at this week's market opening, we have more sells pressure driving prices lower to $4000 price level, almost close to $3900. However, there was a very strong support at $4000 price level, absorbing the supply and creating demand Territory (zone)
The strong demand to supply absorption left a long visible wick at below the demand area, which normally is attributed to signs of strength. However, I perceive weakness underground, indicating weakness from the demand area. Meaning that there is a higher possibility for prices to drop lower.
We will take a look at what is happening and what we can be expecting in the market this week.
While I was still writing this review, I noticed a sudden spark in price towards the upper territory and very close to the resistance area. Now some newbies would hasten into a fake buy program which can significantly increase the risk of losses.
I don't think XAU (gold) demands will be enough to cover this supply at the moment. Because I have noticed a pattern always similar to supply continuation. However, anything can happened in the market as I could be totally wrong. What I am say is that; I have noticed a pattern that is common to weak demand zones , which if the price drop or breaks this very zone lower, The supply volume will be extreme.
And that might drives prices to a lower territory, increasing panic and fear, which in turn increases lower market prices. If that happens, It's a good opportunity to enter into a buy program by systematically increasing your buy volume to take advantage of the price surge,coming shortly after.
Gold will be heading to $10,000, but the timing is what I can't really tell at the moment. Well, I don't have much to say than, "Trade wisely". Cheers!
