XAU#20:Gold plunges sharply,but will the“Bull Market"end easily?

💎 💎 In the previous article, the clear divergence in the H1 frame was confirmed by a correction of Gold. Now we will come up with the next plan: 💎 💎 💎

1️⃣ **Fundamental analysis:**
📊The main reasons for the decline of gold: profit taking by investors, a stronger USD and unsurprising US inflation data, which has curbed expectations of the Fed cutting interest rates.
🔹The Russia-Ukraine war is nearing its end as the final agreements are being negotiated.
🚀If there is a situation of high inflation but a weak economy (stagflation), gold prices may continue to rise sharply.
📌Some experts believe that gold prices are about 15% higher than fair value, but new factors such as central bank gold purchases and strong demand from China can still push prices to continue to rise.

2️⃣ **Technical analysis:**
🔹 **D frame**: 4 consecutive days of decline of about 120 USD, but looking at the overall price structure of gold, it is still stable. This correction with the goal of retesting the support zone below
🔹 **H4 frame**: The price structure has been broken. However, to get down to the support zone below, if there is no unexpected news, we still need a recovery to gain momentum. The pinbar at the end of the 6th session and the subsequent increase are supporting this option.
🔹 **H1 frame**: The price structure is very clear. The recovery at the end of the 6th session is the profit-taking action of the sell position forming a weekly candlestick wick.

3️⃣ **Trading plan:*

⛔ Currently the price structure is still decreasing. We should not trade against the trend at this time. Especially at this time, information about reaching an agreement on the Russia-Ukraine war can appear at any time
✅ Waiting for the price to reach important resistance zones to trade in line with the trend is the top priority. This is also the profit-taking area for the case where we establish a position when the price line confirms a recovery with the price structure.

💪 **Wishing you success in achieving profits!**