THE LONG SHOT 〉POTENTIAL OUTLOOKAs illustrated, I'm trying to visualize how a potential continuation impulse could look like during " Bullish July " and toward the end of the year (depending on how aggressive buyers step in; specially central banks and institutions).
As you can see on this Daily chart, price respected a long term trend line + is forming higher lows, funneling into a shorter and shorter range of accumulation.
This is a very strong bullish behavior; when price gets tighter and tighter respecting a resistance level, but making higher lows. It tends to indicate that price is accumulating and "loading" (sort of speak).
Now, analyzing gold from the fundamental aspect, one MUST align those factors with price. In other words: DOES IT MAKE SENSE TO BE BULLISH OR "THINK" PRICE COULD RISE?
Well, ask yourself and do the research on the following (but not limited to) questions:
1. How is the US dollar doing? (Since it is the world's "reserve" currency)
2. Are the interest rates in the USA favoring the economy?
3. How is the world economy as a whole doing?
- inflation in the top world powers and important economies?
4. How is international trade policy looking like for the world?
- Positive or negative? Are countries happy with each other currently, trading without any issues? (Or maybe... there's a tariff war and a trade war goin on?...)
5. Politically speaking, is the general public UNITED or POLARIZED? (politics is a key fundamental aspect for the price of gold, as it either adds to uncertainty and tensions, or it calms things down).
6. Geopolitically speaking (and most importantly); is the "conflict" (war) ending, getting better, resolving? ...
7. Where is the money going and flowing? Black rock, vanguard, and other top hedge funds; where are they investing their money? ( because central banks keep BUYING gold... )
Those are some of many many questions one must study and understand, in order to align the technical aspects of the price of the yellow metal.
If any question/factor DOES NOT POINT to bullishness in price, then the technical and price projection of any analysis starts to have weakness.
On the other hand, if the fundamental factors and questions in play INDEED POINT toward an uncertain situation, adding bullishness to the price, any analysis and bullish projection simply has those aspects to its favor.
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GOOD LUCK!
persaxu
