Corona Virus Fears & Strong Technicals Cause Surge In GOLD!
As you all know, I've been very bullish on gold for quite some time now. And at the moment, gold looks EXTREMELY bullish. However, it is in overbought territory. You can see that gold is holding the 30 week moving average (in orange) just as it did in 2009, 2010, and 2011. This shows us that gold has entered a bull market rally. If we look back at that previously mentioned time period, we can see that the RSI was overbought from time to time then as well. So, in my opinion, the gold chart looks VERY bullish, and very healthy right now.
Looking at the volume, you can see that there has been an enormous amount of mostly buy side volume. In fact, this is actually record volume for the GC contracts. So, I think that says a lot about the investor interest in this market right now, and how it's set to perform going forward.
Since the gold price is a bit over extended at the moment, I wouldn't be surprised to see it fall back to the 30 week MA in the near future. If that happens, and if price can hold the 30 week, it should be a good buying opportunity. However, if at any point price fails to make a higher high, and then falls back down below the 30 week, and closes below it on a weekly basis, that would be a sell signal.
In my view, I think gold will most likely continue to rally, and eventually, I think it will reach new all time highs. As you can see, I've put some hypothetical arrows on the chart to show how that could play out. There is a rising trendline of resistance (in black) that originates on a peak from 1980. I think price is likely to rally to that point, which should be around the 2200 range. From there, we will have to see what happens. If gold is able to break out above the rising black trendline, and the find support on top of it, that would be wildly bullish, but we are a long way from there at the moment. For now, the biggest thing to watch is the support on the 30 week MA.
I'm The Master of The Charts, The Professor, The Legend, The King, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
Looking at the volume, you can see that there has been an enormous amount of mostly buy side volume. In fact, this is actually record volume for the GC contracts. So, I think that says a lot about the investor interest in this market right now, and how it's set to perform going forward.
Since the gold price is a bit over extended at the moment, I wouldn't be surprised to see it fall back to the 30 week MA in the near future. If that happens, and if price can hold the 30 week, it should be a good buying opportunity. However, if at any point price fails to make a higher high, and then falls back down below the 30 week, and closes below it on a weekly basis, that would be a sell signal.
In my view, I think gold will most likely continue to rally, and eventually, I think it will reach new all time highs. As you can see, I've put some hypothetical arrows on the chart to show how that could play out. There is a rising trendline of resistance (in black) that originates on a peak from 1980. I think price is likely to rally to that point, which should be around the 2200 range. From there, we will have to see what happens. If gold is able to break out above the rising black trendline, and the find support on top of it, that would be wildly bullish, but we are a long way from there at the moment. For now, the biggest thing to watch is the support on the 30 week MA.
I'm The Master of The Charts, The Professor, The Legend, The King, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
www.tradingview.com/...llapse-and-Gold-GC1/
www.tradingview.com/...-The-Gold-Market-GC/