Gold has been hot of late. The weekly RSI is over 83 which has proven to been a strong resistance area. The price action is hitting some resistance as well. I'll be looking for gold to pull back soon to rest temporarily before it shoots for $1800.
@anand1988, After being on the sidelines for 8 long years, Gold and Silver are becoming the hot commodities to own. Especially with the world financial markets really feeling the squeeze, it won't take much to send precious metals soaring. China's banking system is really under pressure after absorbing Baoshang Bank to prevent it from going under. I heard 19 of their banks delayed their 2018 financial disclosure reports, which is a really bad sign. It's only a matter of time until they have their own Bear Sterns/Lehman Brothers incident to send them all crashing. Global currencies are getting weaker by the day and bonds are entering negative yields. Once sh*t hits the fan, Gold will go parabolic. I will be buying up as much as I can on this next pullback as I don't think we'll revisit this area again. In the last year we've seen a $183 wave 1 and $253 wave 3. We'll see how high wave 5 can go. I think $1800 is definitely possible.
anand1988
⋅
@jpbrown1023, thanks alot Jp for your explanation. kindly advise what is the max pullback to be expected this week?
jpbrown1023
⋅
@anand1988, If I had to guess, to the lower support level in the rising wedge ~$1450