Welcome to Extreme Investor Network, where we provide unique insights and analysis on the stock market, trading, and all things Wall Street. Today, we are diving into a Weekly Bearish Signal that you need to keep an eye on.
Last Friday, gold experienced a sharp decline after hitting a new record high of 2,484. This aggressive selling pressure indicates a potential bearish retracement in the market. Additionally, a bearish signal was triggered as gold fell below the previous week’s low of 2,394. If gold continues to drop below 2,384, we could see even lower prices in the near future.
When analyzing the historical retracements in gold, we notice a pattern forming known as the ABCD pattern. This pattern typically occurs before a bullish reversal in the market. With a potential target of 2,332, gold may see a further drop before finding support. However, it is important to note that gold remains above key support levels at 2,294 and 2,277, indicating potential for a bounce back in the future.
Despite the short-term bearish signals, the larger picture in the monthly chart of gold remains bullish. A recent bullish reversal suggests that gold could eventually reach new record highs. Keeping an eye on the monthly low of 2,318 will be crucial, as a drop below this level could trigger a bearish reversal. As long as gold stays above 2,318, there is still hope for a rally and a challenge to recent highs once the correction is complete.
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