Last week, we cited the in the SPDR Gold ETF. Today’s chart shows a similar pattern in miner Barrick Gold.
First, consider the series of lower highs since August 2020. Then notice how the price action Friday and today violated this downward trajectory.
Second is the rounded bottom around $18, which took shape in the fourth quarter. This suggests new support has emerged as the bearish trend fades.
Such a squeezing range may have reflected an equilibrium between buyers and sellers. However that neutral market took shape before inflation worries caused the broader market to stumble. The newer (and less bullish) normal is potentially more favorable for a safe haven like gold.
Next, traders may view the November high around $21.19 as resistance. Can GOLD close above that level?
Finally you have some interesting relative strength because gold miners are up about 5 percent in the last month, while the S&P 500 is down about 5 percent in the same period.
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I have noticed that the sentiment for a stock market crash is high and looking at most of the index charts I believe they are in a Elliott correction wave. The RSI for gold is already near overbought and the breakout on the gold chart could turn into a Elliott down channel.
The sentiment is high as the same old mistakes are there and being ignored from leaders who tell you what you want to hear and not taking the harder approach.
Those heavily invested in gold have started up the marketing machine to point out the past mistakes and how in the past gold was a safe haven which is lost on the newer generations who have never experienced high inflation.
Easy money, debt, greed and technology is bad for gold when you can’t use it online.
Convert gold into digital currencies that are made useless by the Governments and like many of the Government run services will be handed to private industry.
Many of the old systems are being replaced, service stations will disappear in the future with crude oil no longer needed.
Online security companies will no longer be needed and large tech companies are losing dominance because of web3.
I feel sentiment and new technology will replace many of the old tech like gold and are the future investments.
FXKillA
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I really like what I see, I honestly do 🧐
TradingWithJaritStox
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not breakout yet 1870 to 1875 is a big hurdle for it and we can see retest coming to 1820 to 1840 levels
and the breakout on the gold chart could turn into a Elliott down channel.
The sentiment is high as the same old mistakes are there and being ignored from leaders who tell you what you want to hear and not taking the harder approach.
Those heavily invested in gold have started up the marketing machine to point out the past mistakes and how in the past gold was a safe haven which is lost on the newer generations who have never experienced high inflation.
Easy money, debt, greed and technology is bad for gold when you can’t use it online.
Convert gold into digital currencies that are made useless by the Governments and like many of the Government run services will be handed to private industry.
Many of the old systems are being replaced, service stations will disappear in the future with crude oil no longer needed.
Online security companies will no longer be needed and large tech companies are losing dominance because of web3.
I feel sentiment and new technology will replace many of the old tech like gold and are the future investments.