The Return of the Golden Bull
Technical Analysis
- Gold has been in a 2 year consolidation, after a 7 year uptrend of over 90% from 2018 to 2020.
- Price Action is contracting on a monthly basis, within a bullish pennant.
- After an intermediate bear trend of 3 months, Gold is at a massive horizontal support, coming from the 2011 High.
- Gold is also right above the rising trendline from the march 2021 low and above the falling trendline from the august 2020 high.
- This might be a multi year buying opportunity for Gold, it is hard to put a price target on it, but I would assume around 4000$ could be achieved, if everything goes as expected.
Fundamental Analysis
- There is also a point to be made for gold, fundamentally.
- We are at record inflation, tightening into slowing economic conditions.
- Bonds are loosing massively, as are equities and Bitcoin.
- Gold has been holding up rather well, despite the US10Y and the DXY rising relentlessly.
- In my opinion this is an indicator, that Gold is still the true safe hafen asset to investors, in case of monetary debasement and simultaneously worsening economic conditions.
Enter the trade
- I am waiting for a short term trend change, as we are currently below the 5, 10, 20, and 50 day moving averages.
- I want to see Gold above a rising 5dma, crossing the 10dma.
- I am also looking for a weekly close above 1877$.
- Gold has been awfully hard to trade in the past months, due to extremely choppy action, often giving daily buy and sell signals on the RSC Trend Trading Indicator, right after each other, so I will be cautious.
This is not financial advice, I wish you good luck trading.
Cheers
Tom
Technical Analysis
- Gold has been in a 2 year consolidation, after a 7 year uptrend of over 90% from 2018 to 2020.
- Price Action is contracting on a monthly basis, within a bullish pennant.
- After an intermediate bear trend of 3 months, Gold is at a massive horizontal support, coming from the 2011 High.
- Gold is also right above the rising trendline from the march 2021 low and above the falling trendline from the august 2020 high.
- This might be a multi year buying opportunity for Gold, it is hard to put a price target on it, but I would assume around 4000$ could be achieved, if everything goes as expected.
Fundamental Analysis
- There is also a point to be made for gold, fundamentally.
- We are at record inflation, tightening into slowing economic conditions.
- Bonds are loosing massively, as are equities and Bitcoin.
- Gold has been holding up rather well, despite the US10Y and the DXY rising relentlessly.
- In my opinion this is an indicator, that Gold is still the true safe hafen asset to investors, in case of monetary debasement and simultaneously worsening economic conditions.
Enter the trade
- I am waiting for a short term trend change, as we are currently below the 5, 10, 20, and 50 day moving averages.
- I want to see Gold above a rising 5dma, crossing the 10dma.
- I am also looking for a weekly close above 1877$.
- Gold has been awfully hard to trade in the past months, due to extremely choppy action, often giving daily buy and sell signals on the RSC Trend Trading Indicator, right after each other, so I will be cautious.
This is not financial advice, I wish you good luck trading.
Cheers
Tom
Comment:
Gold has been hit hard, instead of going up, luckily I have not entered any position, because the Set Up was not given. As of right now, I have accumulated a little bit of Gold on friday, and might continue to do so next week. Gold landed on the 200 Week EMA, and so far it held.