Gold Weekly
Price Chart / RSI / Momentum
The depth of the analysis for Gold will be a bit more dialed back from previous charts since this one is fairly straight forward.
Wham. Bam. Get to the TLDR man, well, that would just be... don't buy Gold. The triple top pattern began in August 2020 and created it's final top in May being unable to push past the level of resistance previously created (Red Box); also notable is the trend line that was broken (Yellow Solid) and retested at the same level. All of this helped lead to the formation of the head and shoulders pattern (Aqua Curves) that we're still waiting on conformation of with increased volume and or some form of significant close below the neckline (Double Red Solids). This is accompanied by the RSI pushing below the 50 level (Aqua Highlighter) and momentum falling off a cliff while snapping an important support level.
It's interesting getting a head and shoulders at the end of of a triple top since technically it's signaling a reversal of sideways movement; maybe our Wall Street overlords are signaling a little too hard? (insert it's a trap meme) Aaanndd Gold makes a new high.
*Momentum was used for this analysis because the chart showing a more clear signal than on the OBV
Chart Key
Yellow Solid = Major Trend Line
Red Solid = Important Level of Resistance / Support
Aqua Curves = Head and Shoulders Pattern
Red Box = Resistance
Green Boxes = Supports / Target Areas
Price Chart / RSI / Momentum
The depth of the analysis for Gold will be a bit more dialed back from previous charts since this one is fairly straight forward.
Wham. Bam. Get to the TLDR man, well, that would just be... don't buy Gold. The triple top pattern began in August 2020 and created it's final top in May being unable to push past the level of resistance previously created (Red Box); also notable is the trend line that was broken (Yellow Solid) and retested at the same level. All of this helped lead to the formation of the head and shoulders pattern (Aqua Curves) that we're still waiting on conformation of with increased volume and or some form of significant close below the neckline (Double Red Solids). This is accompanied by the RSI pushing below the 50 level (Aqua Highlighter) and momentum falling off a cliff while snapping an important support level.
It's interesting getting a head and shoulders at the end of of a triple top since technically it's signaling a reversal of sideways movement; maybe our Wall Street overlords are signaling a little too hard? (insert it's a trap meme) Aaanndd Gold makes a new high.
*Momentum was used for this analysis because the chart showing a more clear signal than on the OBV
Chart Key
Yellow Solid = Major Trend Line
Red Solid = Important Level of Resistance / Support
Aqua Curves = Head and Shoulders Pattern
Red Box = Resistance
Green Boxes = Supports / Target Areas
Comment:
Looks like last week price action broke down from the neckline of the head and shoulders that was outlined, but on rather low volume. We need to see a decent drop in price with volume to verify it in order for this head and shoulders to play out. Don't forget, this is a reversal pattern and Gold has been trending sideways for close to three years. At this point is basically anyone's guess since Gold is considered a safety hedge and whirlwind of economic non-sense is about to hit the fan; e.g. housing market, mortgage rates, Fed rate pause, NDX / SPX reversals...