As we can see, since Dec '16 Gold is printing higher highs, or if we want to look at shorter period, it is printing higher highs since the end of 2018. As we can notice on the graph trend is not broken, even we had a strong correction in the last few weeks or so. The first reason for sure is fear related to the entire state of the economy, even the gold should be a "safe haven" in these times. Still fear of unknown and fear of coronavirus is obviously very strong and people are not ready to invest more in gold. The second reason, for more brave investors, is to take profit from gold and invest in really discounted prices of other assets (mostly stocks) - yes I am sure a lot of people are buying in these moments.
Regarding technical indicators, we can see that gold at the moment is testing support around 1480-1500 which is exactly where it is support from last upper high, fib 0,5 and MA50. Also, gold printed very nice bullish wedge, where support is also on the same levels as previously mentioned.
So there are two scenarios, first is that support will hold and we will have bounce up and gold will try to make new higher high. This mean that gold will break out the symmetrical triangle that is printed on a larger scale since 2011, and maybe will try to reach ATH. Please notice there is strong resistance on 1670/1710-1730/1800 - if gold is able to pass 1800, then for sure we will test high from august '11. We will see,
The second scenario, if support is broken, we will test MA200 in upcoming weeks, and that means we could easily go down to 1376, and this means that bullish trend is broken. If this happens we could also test 1300, but first we need to see if MA200 will hold. Also, note MACD signalled sell signal but it is still around 20 above 0.
I am kinda hoping that support will hold, and we will see gold going up and testing ATH, not maybe that fast but in month or two.
Disclaimer:
- this is not any kind of trading advice
- I am a noob, this is for my learning and training purposes
Comments are appreciated.
Regarding technical indicators, we can see that gold at the moment is testing support around 1480-1500 which is exactly where it is support from last upper high, fib 0,5 and MA50. Also, gold printed very nice bullish wedge, where support is also on the same levels as previously mentioned.
So there are two scenarios, first is that support will hold and we will have bounce up and gold will try to make new higher high. This mean that gold will break out the symmetrical triangle that is printed on a larger scale since 2011, and maybe will try to reach ATH. Please notice there is strong resistance on 1670/1710-1730/1800 - if gold is able to pass 1800, then for sure we will test high from august '11. We will see,
The second scenario, if support is broken, we will test MA200 in upcoming weeks, and that means we could easily go down to 1376, and this means that bullish trend is broken. If this happens we could also test 1300, but first we need to see if MA200 will hold. Also, note MACD signalled sell signal but it is still around 20 above 0.
I am kinda hoping that support will hold, and we will see gold going up and testing ATH, not maybe that fast but in month or two.
Disclaimer:
- this is not any kind of trading advice
- I am a noob, this is for my learning and training purposes
Comments are appreciated.