Hi everyone! So as a believer in all weather portfolio and with the current increase in anticipation of a crisis, wanted to take a look at the current gold price actions.
Before going in to TA I want to clarify one thing. Since my trade focus is mostly in crypto, I see lot of people saying btc is the new gold and to hedge against markets people should use btc. I am sorry to say this but this is one of the stupidest and thoughtless ideas I have ever heard. I do believe btc might become that safety haven one day but it still has a long way to go. Just simply think of the demography of wealth and these 2 assets. As we all now wealth is something accumulated and time is a huge factor in this, thus when we look at wealth & age graphs we see most of the wealth is held by people over their late 50's. If we look at people who use btc( believer in tech or just pure speculation) we see people in ages between their 20's and 30's . Basically people who own the wealth currently do not see btc as store value and will definitely not see it as a store value in a crisis situation and as for the ideas of people in their 20's and 30's, they do not matter yet. As I said before I do believe btc has value but still has a long way to go. "Most people overestimate what they can do in 1 year and underestimate what they can do in 10 years.”
As for the TA. We could see gold has been making lower highs and lower lows. Currently 50 ema on the daily is holding as support however 21 ema has started to put downwards pressure and it might start to push it even further. If we look at pivot points to draw our next supports we could see that they are aligning with our fib levels. The key level might be our S2 since our support from pivot points, .5 fib level and 200 ema are aligning. There for I believe 1400 levels would be a good entry to go long. There is a chance of gold break upwards as well however I believe it would be to risky to enter before seeing a higher high
As always just a thought not an advice.
Before going in to TA I want to clarify one thing. Since my trade focus is mostly in crypto, I see lot of people saying btc is the new gold and to hedge against markets people should use btc. I am sorry to say this but this is one of the stupidest and thoughtless ideas I have ever heard. I do believe btc might become that safety haven one day but it still has a long way to go. Just simply think of the demography of wealth and these 2 assets. As we all now wealth is something accumulated and time is a huge factor in this, thus when we look at wealth & age graphs we see most of the wealth is held by people over their late 50's. If we look at people who use btc( believer in tech or just pure speculation) we see people in ages between their 20's and 30's . Basically people who own the wealth currently do not see btc as store value and will definitely not see it as a store value in a crisis situation and as for the ideas of people in their 20's and 30's, they do not matter yet. As I said before I do believe btc has value but still has a long way to go. "Most people overestimate what they can do in 1 year and underestimate what they can do in 10 years.”
As for the TA. We could see gold has been making lower highs and lower lows. Currently 50 ema on the daily is holding as support however 21 ema has started to put downwards pressure and it might start to push it even further. If we look at pivot points to draw our next supports we could see that they are aligning with our fib levels. The key level might be our S2 since our support from pivot points, .5 fib level and 200 ema are aligning. There for I believe 1400 levels would be a good entry to go long. There is a chance of gold break upwards as well however I believe it would be to risky to enter before seeing a higher high
As always just a thought not an advice.