Night Market Gold Review
Amendments have a Chance to End, The Price of Gold can Rise Again
Independent Analyst: Teacher Ling
Date: 22 May 2020
On the four-hour chart, Bollinger Bands are rising and conducive to volatility. The current gold price has been consolidated and the lower rail has stabilized. After a fast rebound, the focus is on whether it can break the middle rail and accelerate expansion. MACD is still more neutral in quantity and energy, and convergence of low-level quantities near the zero axis. KD values rebound from the low-end oversold area and indicate a favorable gold fork or gold price performance ending the adjustment and retrying as a test, but references may be limited due to excessive indicator speed.
On the daily chart, the opening of Bollinger Bands is still more upward, and the price of gold is currently rebounding after returning to the middle rail and rebounding. The energy value of the MACD amount is still more common, but convergence of the value of the number of follow-up or volume accumulation is required. KD values indicate the performance of a dead fork or bring certain corrections and adjustments to the gold price, but the speed and space for backward adjustments may be limited because the speed indicator runs too fast.
The last day, the price of gold started a second advanced retracement adjustment trend, in the initial stages, inertia was tested around 1737, the middle rebound was adjusted to proceed to near 1731, and the tail stage rebound was weak after the acceleration of the extension of the next test. Seeing support near 1716, the closing price was 1725.9 In the news, governments from various countries began to gradually lift epidemic prevention and control measures, and enter the rhythm of an economic restart, encouraging market risk appetite sentiments to rebound significantly. This attenuated demand avoidance gold risk, coupled with technical volume can release oppression, the price of gold drops quickly to complete the correction.
Technically, before the price of gold sees a rapid volume release near 1703, it can be adjusted to around 1451, and then restart and build a V-shaped reversal structure near 1747. With the advent of new highs, a return to the upward trend has basically been set. Preservation and expansion of expectations and preparations, in addition, the price of gold in the band market 1451-1747 shows the structure of the dominant trend wave due to the superiority of speed and amplitude, and then enters a convergent triangle to regulate the market, which can be considered as a relay adjustment in the market trend. At present, the breakthrough of the acceleration triangle and the emergence of new highs have also formed the return of the upward dominant wave trend, which is expected to continue to attract market buying and follow-up as a push into the inertia test room.
After the price of gold broke through the top of the triangle area, it accelerated and reached a new high near 1765. After the top of the triangle area, there were no signs of follow-up. Volume can quickly release the market, getting support at least around 1725; After that, gold prices rebounded and there was a breakthrough from the previous high transition level near 1747, which was slightly better, but the overall lack of slope and gain amplitude, after the previous trading day, the consolidation of high-end gold prices had come under pressure near the 1755 limit. After backward adjustments, yesterday, under inertia, the test dropped below the previous 1725 retracement low and then accelerated to around 1716, indicating a sub-sophisticated retracement adjustment trend; The space has basically passed through the superimposed space, and also completed the release and confirmation of the amount of energy near the top of the original triangle area. The overlapping effect of the double position has attracted a follow-up to the technical buy-back, and there has been a rebound in the rate increase in a day. Referring to the end of the correction and adjustment, and promotion after the central pivot window price closes at four hours is expected to continue to attract market purchases and follow-up as possible to promote testing challenges, therefore, investors are advised to pay attention to the current gold price testing to adjust opportunities buy and choose.
Night investment strategy:
Be careful at night to take long low Buy positions, see 1724.0-1730.0 Buy, Stop loss 1719.0, target 1738.0-1747.0; upper resistance: 1755.0; lower support: 1715.0.
● According to statistics from the Worldometer data website, on 10:18 May 22, Beijing time, the cumulative number of new cases of corona pneumonia exceeded 5.19 million cases, reaching 5,194,210 cases, and cumulative death cases exceeded 334,000, reaching 334,621 cases.
● The United States announced its intention to withdraw from the Sky Open Agreement, which allows 35 countries, including Russia, to conduct unarmed reconnaissance flights in their respective territories to ensure that countries are not ready to take military action. The Trump administration had previously stated that Russia had repeatedly violated the terms of the agreement.
● President Trump said on Thursday that the Fed and the Treasury still have "ammunition" in their arsenal, which could help the US economy which was devastated by the corona virus pandemic, although he doubted whether it was necessary to make new initiatives. In addition, he also stated that if the United States faced a second wave of corona virus infection, "we will not close our country."
● Minutes of the Fed meeting released on Thursday morning (May 21) show that the Fed reiterated its commitment to use all policy tools to support the economy. The minutes of the meeting also stated: "Participants commented that besides greatly affecting economic activity in the short term, the economic impact of the pandemic caused a lot of uncertainty and caused considerable risk for medium-term economic activity."
● The US Senate passed a law on Wednesday that could prevent some Chinese companies from listing on US exchanges unless they comply with US audits and regulatory standards.
● Recently, the growth of the corona pneumonia epidemic in the United States has slowed slightly. Many states in the United States have lifted restrictions on preventing epidemics to various levels and restarted the economy. On May 20 local time, all states in the United States have entered the restart phase.
● US U.S. President Tuesday announced the rules for a US $ 19 billion rescue plan for agriculture, and farmers within the scope of the plan will start applying for help next week. The US Department of Agriculture issued a statement saying that farmers who suffer a price loss of 5% or more can receive direct subsidies of up to $ 250,000 per person.
● On Tuesday (May 19), Fed Chair Powell and US Treasury Secretary Mnuchin attended the Senate Finance Committee meeting, and both parties released more easing signals. Powell said, "If necessary, be prepared for further stimulus action." Nuchin said that the government was "fully prepared to bear losses" to save companies affected by the corona epidemic.
● Wednesday (May 20) The United States issued new sanctions on Iran, looking for ways to prevent Iran from selling oil to Venezuela.
● The annual monthly rate for new housing starts in April in the United States fell by 30.2% and the monthly rate for construction permits in April fell by 20.8% The epidemic affected the property market and the US economy. For the US real estate market, this year should be very good. Years, but now everything is full of uncertainty.
● Moderna announced on Monday (May 18) that an initial human trial of the company's initial corona virus vaccine produced new coronavirus antibodies in 45 test takers. Moderna said his new coronavirus vaccine showed promising results in small-scale trials and will be available in early January next year. The news heats up market optimism, and hedging assets such as gold are sold.
● China Paper Gold shows that funds traded on the world's largest gold-listed exchange (ETF) had 1,112.32 tons on May 22, the same as the previous day, with a net increase of 55.82 tons this month.
Last market reference price：
* Quotations of information provided by "First Gold" are for reference only
Important data tonight:
19:30 The European Central Bank announces minutes of its April monetary policy meeting.
20:30 The level of monthly Canadian retail sales in March.
1:00 the next day the United States active crude oil rig on May 22th.
Operating recommendation data for today's review applies to system times GMT 09: 30-20: 00 (HKT17: 30-04: 00).
All the information mentioned above only represents the view of corresponding PT. Mentari Mulia Berjangka. The information, opinions and analysis contained herein are based on sources believed to be reliable but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. PT. Mentari Mulia Berjangka is not responsible for the content of any analysis, advice, comment, suggestion, research report or market data in this article and link to third-party resources.