GOLD jOURNEY THIS YEAR . . . Logic using SENTIMENTS And EMOTIONS !
Gold journey till 1033 $ . . . When gold crossed the barrier of 1000 $,take a common mans outlook. It crossed 1000 $ every data,news coming out is predicting 2000 $ by year end . . . Atleast 1100 $ is a surest sure.Lets buy.
When u are so simple convinced about it . . . Similar logic will all others use.May be 80 % of people out there thought the same.
One should remember that,when one buys a futures contract,other one sells it.His mind set is favouring a fall while yours is favouring a bull run.But when majority is in bullish view,sellers are diminished.Confirming a bull,all you people are compelled to buy at the price where seller sells . . Very low.Thus minority wins here.
It caused a sell off till 850 $. End of part 1 .
Part 2
consolidation began. Range was 850$ to 880 $. Those holding physical n all at 1000 $ region. . . There hopes got killed.They think as 900 $ is not getting crossed,and all are talking about 800 $,i will ride the down move when it touches 880 $.And he sells off his 1000 $ holding at 880 $. While those who are new entry think they will ride from 850 $ till 1000 $ back.This leads to mixture of feelings and consolidation occurs.No one knows where exactly we are going to ? End of part 2
some news,data like US weakening n the like breaks out.900 $ broken.Here we come new highs in gold.I should buy right now ?No lets 950 $ cross. That should confirm it.So all got bullish again.Majority got bullish again.Anyone out there thinking of 800 $ anywhere?Nope.Result ? Minority won.You got to buy at lower rate.Prices fell drastically to 880$ back.
Majority still holding the buy from 980 $ n stuff.And there is a hope, 850 $ should hold.So again buy and average here at 880 $.Again sellers low at this low level and averaging in addition to buying continue. This was the affect of 850 $.This sentimental affect lead to break of 850 $.
Was there anyone who kept an buy order below 850 to be bought ? Nope. Next support levels is 825 $ totally unexpected fall.Fall was so furious,people waited to buy new around 825 $ this lead to 805 $.Now confirmed 800 $ should hold.Sellers booked profit. Buyers entered new buyers and those holding started averaging again.
Today 785 $.800 $ broken.All those bulls are loosing hope of staying in.All are talking of 730 $ now as 800 $ broken and journey back to 1000 $ is too big a task.All those holding buy will exit with lose or due to margin call.
Here comes the future . . . . 800 $ broken above.People get doubtful.Is it the time to buy? Risky ones will buy and safe ones will wait till 850 $ to buy. Those still lingering in the world of 730 $ as target will still believe its coming.Sellers will sell on rise.This causes a consolidation between 780 to 825 $.
Then in september as usual gold demand rises,825 $ broken . . 850 $ broken or a small dip , then again up and 900 $ here we come.
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all buyers re enter.
Then let time tell to where price goes
ofcourse i don't have any proof .Its all upto your senses to believe or just write it off saying 'nonsense'.Anything accepted
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