Welcome to the first Monday of the new month. Overall, looking at the market, I can’t see anything more than what I showed last week. But let’s move on to the charts.
We can notice that the commonly known as NQ rebounded strongly after the consolidation it fell into for a week. Several attempts to break the upper level turned out to be ineffective due to the larger capital that was buying everything that was around the price of 1374. We know that during consolidation the moment of breaking the pattern is important, so you can trade in line with the new move. Currently, the entire decline has already been concentrated by investors and now we have a chance for further increases. Another argument in favor of further growth is another attempt to break the resistance that arose during consolidation, which gives a signal that there is a strong willingness to increase the price of this asset. With blue lines I marked the level that investors were struggling with. The line at the 1360 price level is an indication to which the price may still go down before the breakout is correct. After all, I do not recommend catching the bottom, but waiting for the signal that will allow entry to confirm that the price is going in the assumed direction.
XAUUSD is moving in a narrow channel all the time. The macro data for today and tomorrow do not indicate a large turmoil in the market, so we are currently assuming an upward trend. In the image I have marked a place to which the price can make an adjustment. This place coincides with the support and the canal line so there is a good chance for a possible reaction. Remember that the channel is quite narrow and often in such cases, after some time, there are more frequent breaks that widen the chart pattern. As I wrote earlier, I do not recommend catching the hole on the support shown, it is better to wait for the signal that shows that there was actually a rebound, instead of losing cash because you wanted to enter in the best possible place.
I don’t know if you can see what was created on the chart, but I showed it on the chart. Last week, the topic related to the excessively strong Euro currency appeared once again. This time I did not read about it directly from the statements of the presidents of Europe, but through a message from one of the brokers, and I have no conviction about such information, such as an interview with someone in an important position. However, this does not change the fact that the euro is gaining strength once again and it can be a problem for leaders who print heavy billions of cash for different countries belonging to the Euro zone. Personally, he will wait for the situation to develop, but there is a chance that I will use the opportunity when the price breaks any of the drawn lines.
Cryptocurrencies have slowed down quite significantly, so there are not many opportunities for speculation. However, I can see a positive signal from the market when I look at and analyze the volume. You can see in the picture that during the price increase, investors were more likely to buy Bitcoin, which increased the turnover, but when it was sold, the volume decreased. Such situation on the stock market indicates an upward impulse and a correction. The only thing missing is a drop on a large volume, but on a small price reduction so that we can see that someone is buying everything that others want to sell, so that we will have a clear signal before the oldest cryptocurrency increases.