An exciting week for Gold that started at $1577.68, it is now trading around $1550 level. After the continuation of the positive trend (touching on Wednesday the second high in the last seven years) due to war fears, the price retraced to $1539 on Thursday. Volatility reached six months peak, as showed by the Average True Range (ATR).
As explained in the linked ideas, I don't believe in a trend reversal. I think this is just a temporary correction of a bullish trend.
Next Week Outlook
The high volatility induced investors to profit-taking, thus I will expect the price to consolidate in the next week, eventually recovering some points sustained by new bullish positions for long-term investments.
In this chart
I graphed Gann Fans from the new $1611 high. The 45°angle is the most important, while the other lines show areas of potential future support and resistance. Look at this, and check how the retracement was impressive touching the 1/4 line, finally recovering to the 1/3 line and the 1/2 line. Strong support at $1539 held, and now Gold is trading around the 1/1 line. Next week will probably trade within the 1/1 line. A break over the 2/1 could sustain further bullish momentum.
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Investing Fellow
Disclosure: My ideas contain statements and projections based on assumptions on capital markets, and therefore inherently subject to numerous risks and uncertainties.
Before buying or selling any stock you should do your own research and reach your own conclusion or consult a financial advisor. Investing includes risks, including loss of principal.
I am not a financial advisor.
As explained in the linked ideas, I don't believe in a trend reversal. I think this is just a temporary correction of a bullish trend.
Next Week Outlook
The high volatility induced investors to profit-taking, thus I will expect the price to consolidate in the next week, eventually recovering some points sustained by new bullish positions for long-term investments.
In this chart
Don't forget to support this idea, if you liked it, and to follow me, here on TradingView.
If you have another trading plan, please share in comments!
Investing Fellow
Disclosure: My ideas contain statements and projections based on assumptions on capital markets, and therefore inherently subject to numerous risks and uncertainties.
Before buying or selling any stock you should do your own research and reach your own conclusion or consult a financial advisor. Investing includes risks, including loss of principal.
I am not a financial advisor.
