Welcome to Extreme Investor Network, where we provide you with unique insights into the stock market, trading, and all things related to Wall Street. Today, we will be discussing the recent developments in the gold market and what it means for investors.
Signs of Strength Remain
After a bull breakout, gold pulled back and tested support around the top trendline of the triangle pattern, signaling strength in the market. Yesterday saw a new record daily closing high for gold, further reinforcing the bullish sentiment. The rising purple 20-Day MA is set to converge with the top triangle line, strengthening the potential support level. As long as gold stays above the top triangle line and the 20-Day MA, we can expect eventual new record highs.
Price Range Evident in Weekly Chart
The weekly chart confirms the price range identified in the daily chart, showing a tight consolidation pattern over the past eight days. Last week’s high and low formed a similar price range, with this week shaping up to be an inside week so far.
Daily and Higher Time Frames are Bullish
With an uptrend developing in both short-term and long-term time frames, gold is poised to reach new record highs. A decisive break above 2,532 will signal a continuation of the uptrend and the breakout of the symmetrical triangle pattern. Potential upside targets include 2,543, 2,566, and a range from 2,595 to 2,605. However, a potential decline below the 20-Day MA and top triangle line could lead to a test of lower prices, with significant support at the 50-Day MA at 2,414.
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