Good evening traders,
While I don't hold gold, I hold alot of silver. Due to the correlation, lately, you can practically trade silver using a gold chart.
I wanted to point out a few positive things gold has going for it currently.
1) We can see we have a cup and handle forming on the daily, now granted, the length of the handle is not well developed, and we could certainly see further downside to complete the handle.
2) RSI has crossed its average EMA, this is bullish.
3) Slowstoch is currently mid re-trace to the upper bounds.
4) MACD is currently crossing bullishly on the daily.
5) VFI is threatening to bullishly cross.
With all the market uncertainty, and what should end up being a red week for equities, we can expect a couple of things coming up for gold.
Firstly, as investors flee equities, the dollar index will most likely strengthen, this could be a catalyst to further breakdown past the value area between 1280-1286 (the corresponding .618 and .65 of the bearish structure).
Conversely, if investors seek risk off assets and diversify into gold, it could be just what the metal needs to break out.
Another item of importance is the head and shoulders that is forming on the daily and we must observe closely over the coming days.
As always, if you like my content, please hit the "Like" and "Follow" button. Additionally, you can always receive my updates by going to settings, notifications, check receive email updates, and follow this idea.
While I don't hold gold, I hold alot of silver. Due to the correlation, lately, you can practically trade silver using a gold chart.
I wanted to point out a few positive things gold has going for it currently.
1) We can see we have a cup and handle forming on the daily, now granted, the length of the handle is not well developed, and we could certainly see further downside to complete the handle.
2) RSI has crossed its average EMA, this is bullish.
3) Slowstoch is currently mid re-trace to the upper bounds.
4) MACD is currently crossing bullishly on the daily.
5) VFI is threatening to bullishly cross.
With all the market uncertainty, and what should end up being a red week for equities, we can expect a couple of things coming up for gold.
Firstly, as investors flee equities, the dollar index will most likely strengthen, this could be a catalyst to further breakdown past the value area between 1280-1286 (the corresponding .618 and .65 of the bearish structure).
Conversely, if investors seek risk off assets and diversify into gold, it could be just what the metal needs to break out.
Another item of importance is the head and shoulders that is forming on the daily and we must observe closely over the coming days.
As always, if you like my content, please hit the "Like" and "Follow" button. Additionally, you can always receive my updates by going to settings, notifications, check receive email updates, and follow this idea.
If you find my information helpful, please return the favor and hit the like and follow button, it's very encouraging and keeps me motivated!
Twitter: twitter.com/Jedi_ant
Twitter: twitter.com/Jedi_ant
