Gold (XAUUSD) Analysis – 8th August 2023

gold analysis aug 2023

Heading toward the predefined target region, the gold market is witnessing a downward shift in its pricing towards unprecedented lows. Envisaging a probable retreat to support levels owing to a week-long extension, the observed price dynamics have given rise to an inverted head and shoulder pattern. Notably, the market has effectively breached the neckline, indicating a crucial juncture. Should there be a pullback to the support level and the descending trendline, watch for indications to enter the market. The aim is to reach the resistance level within the 1947-1956 range, contingent on a robust bullish surge in the next four main trading sessions.

Nevertheless, the ongoing scenario reveals a substantial downturn within the prominent pushdown range spanning 1907 to 1888. Should these levels persist until the weekend, it could result in even lower lows, testing the range of 1862.97/1858.82/1850.52.

Considering the chart analysis, the following trading ranges and strategies are suggested:

Activate Purchase/Vend Ceases and Purchase/Vend Boundaries with an aim of Net Average $5-9 for each grouping.
The existing Market Price (CMP): 1921.35

Specific Zones:

S2 Zone at 1888 (Downward Trend, below $1870): Objectives at 1870-1841-1808-1765 with Purchase Boundaries.
R2 Zone at 1931 (Upward Trend, above $1950): Objectives at 1975-1989-2012-2045 with Vend Boundaries.

Critical Immediate Levels:

1907/1900 for Acquisition on and from 10.8.23
1950/1960 for Vendition on and from 10.8.23

Further Extension Ranges:

Vendition Levels: 1946-1966-1988-1993 with lots sizes ranging between 5-10.
Acquisition Levels: 1921-1907-1892-1860 with lots sizes ranging between 5-10.

The above S2 range remains applicable, and batch sizes can be adjusted to a range of 20-50 based on available capital. Stay attuned to dynamic market shifts and adapt strategies accordingly.

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