Unlocking the Potential for a Bullish Reversal on the Weekly Chart
As Extreme Investors, we are always on the lookout for potential bullish reversals that could lead to new record highs in the stock market. The recent retracement that stalled at a low of 2,277 is a promising sign, especially considering it is near the 50% retracement of an internal upswing. When we analyze a larger portion of the uptrend starting from the February swing low, we can see that support came in above the 38.2% Fibonacci retracement, indicating underlying strength.
What sets this potential bullish reversal apart is the fact that buyers have been particularly aggressive, turning the price of gold back up at a higher price area. In addition, momentum has been strong over the past two days as the ascent began, giving us reason to be optimistic.
Key Price Levels to Monitor as the Market Moves Upward
As we monitor the progress of this potential bullish reversal, there are several key price levels to keep an eye on. These include the three-week high of 2,389, the 78.6% Fibonacci retracement at 2,398, the interim swing high at 2,418, and the trend high at 2,431. It’s worth noting that an initial breakout above the top trend channel line occurred on April 8; however, it failed to sustain momentum and led to the recent retracement.
It is interesting to observe that the market recognized a pivot at the point where the two channel lines crossed, which acted as support for the next nine days as gold attempted to move higher. Keep a close watch on the price action once gold surpasses both lines, as this could signify a stronger bullish trend. Currently, gold is above one line, but the significance lies in surpassing the larger rising parallel trend channel line.
For comprehensive coverage of today’s economic events and their potential impact on the market, explore our robust economic calendar for valuable insights.
