GOLD Price Forecast - Concerns Ahead
Today I am looking at Gold price (precious metal per oz) outlook. The multi-year chart is on a weekly basis on a linear chart.
The short term is currently shown in the red shaded oval. You may notice that we were trading in a channel, which we broke out of after having a triple bottom pattern. The price target to meet this pattern is around the previous all time high (ATH) around $1,910-$1,920. As this is also a major resistance area , I can see the price potentially getting rejected at that point and headed back to the top of the channel for a re-test. If we fail the re-test, we will be entering back into the channel with possible re-test again around $1,650-$1,700. Though history does not repeat, it does rhyme. Looking back at the previous similar pattern from 2011, you can see a channel that formed but took some time to breakout. Outside of both channels are sizable descending broadening wedge patterns which are generally bullish . However, these can take quite a long time to play out considering that we are looking at a multi-year weekly chart for Gold . One area to keep an eye on for the downside is the bottom rising trendline around $1,450-$1,500 which has held as long term support in case we head down significantly.
One more thing to think about is with the DXY ( Dollar index ) strengthening recently and the asset prices in commodities , equities, crypto, real estate, art, yachts, etc are high, we can see some upcoming years of prices reducing and an economic downturn.
The long term as noted by my green path line shows that after we have one more re-test of the bottom trend line , we can get one more leg up. My biggest concern with the Gold chart is that we are in a massive rising wedge pattern which began in 2001. Rising wedge patterns are generally bearish and usually break down to the price where they started which is around $350-$450. Though concerning, this could take another 15-20 years to happen.
Disclosure: This is just my opinion and not any type of financial advice. I enjoy charting and discussing technical analysis . Don't trade based on my advice. Do your own research! #cryptopickk
The short term is currently shown in the red shaded oval. You may notice that we were trading in a channel, which we broke out of after having a triple bottom pattern. The price target to meet this pattern is around the previous all time high (ATH) around $1,910-$1,920. As this is also a major resistance area , I can see the price potentially getting rejected at that point and headed back to the top of the channel for a re-test. If we fail the re-test, we will be entering back into the channel with possible re-test again around $1,650-$1,700. Though history does not repeat, it does rhyme. Looking back at the previous similar pattern from 2011, you can see a channel that formed but took some time to breakout. Outside of both channels are sizable descending broadening wedge patterns which are generally bullish . However, these can take quite a long time to play out considering that we are looking at a multi-year weekly chart for Gold . One area to keep an eye on for the downside is the bottom rising trendline around $1,450-$1,500 which has held as long term support in case we head down significantly.
One more thing to think about is with the DXY ( Dollar index ) strengthening recently and the asset prices in commodities , equities, crypto, real estate, art, yachts, etc are high, we can see some upcoming years of prices reducing and an economic downturn.
The long term as noted by my green path line shows that after we have one more re-test of the bottom trend line , we can get one more leg up. My biggest concern with the Gold chart is that we are in a massive rising wedge pattern which began in 2001. Rising wedge patterns are generally bearish and usually break down to the price where they started which is around $350-$450. Though concerning, this could take another 15-20 years to happen.
Disclosure: This is just my opinion and not any type of financial advice. I enjoy charting and discussing technical analysis . Don't trade based on my advice. Do your own research! #cryptopickk
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I hold crypto on Ledger Hardware: shop.ledger.com/?r=9f683f228f19
I find value in the data from LuxAlgo:
www.luxalgo.com/pricing?rfsn=6252565.5f61bd
