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At Extreme Investor Network, we provide exclusive analysis and insights into the stock market, trading strategies, and Wall Street news. Today, we are diving into the recent market movements and what it means for traders and investors.
Support Holds Around Prior High: A Possible Bottom in Sight
Yesterday, support was observed around the prior resistance level at the August high of 2,532 and a 50% retracement level at 2,534. Additionally, an extended bottom channel line from a previous bull flag formation also suggests potential support around yesterday’s lows. These technical indicators point to a possible bottom forming, which could lead to a bounce in the market. However, an advance above yesterday’s high is essential for confirmation.
Breakdown of Rising Channel May Take Time to Recover
The recent correction caused significant technical damage on the way down, indicating that it may take some time to fully resolve. A decline below the 50-Day MA, internal uptrend line, and a prior daily swing low (also a monthly low) occurred for the first time in nine months. The breakdown of a rising parallel trend channel further adds to the complexity of the situation. This breakdown of symmetry may lead gold to test support around the lower rising uptrend line, following a clear channel break.
Bullish Reversal Above 2,619: Potential Resistance Ahead
After a bullish reversal from yesterday’s lows, gold is now approaching potential resistance levels at the prior swing low of 2,600 and Thursday’s high at 2,619. These levels act as crucial points to watch for future price movements. The 50-Day MA at 2,652 also holds importance in determining the market’s direction. A daily close above the 50-Day MA could signal a shift in the current trend.
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