Welcome to Extreme Investor Network, where we provide unique and valuable information for traders and investors in the stock market. Today, we will be discussing the recent movement in the gold market and potential key support levels to watch out for.
Recently, gold reached the 2,753-upside target, signaling a selling opportunity in the market. However, there are higher targets for gold that could be approached once a retracement is complete. It is important to note the potential support levels on the way down, with the first one being the most recent breakout level at 2,686.
After a bullish breakout, a pullback is expected, and the prior resistance breakout level is often tested as support. With gold triggering a bearish daily reversal shortly after the bull breakout, it is likely to be revisited. Just below the prior breakout level lies the 20-Day Moving Average at 2,667, which is a key near-term trend indicator for gold.
The 20-Day MA has been recognized as support since it was recaptured on August 8, with multiple tests as support in early-September and October leading to bullish continuations. Any break below the 20-Day MA would be considered bearish and could lead to a further decline in gold prices.
Additionally, the 2,754 target represents a 250% extended retracement of the decline from the March 2022 high, with an interim target zone from 2,797 to 2,815. This range includes the initial target from a recent breakout of a bull flag and a 200% extended retracement target from the 2011 top.
For more insights and analysis on today’s economic events and how they may impact the market, be sure to check out our economic calendar. Stay tuned to Extreme Investor Network for more expert analysis and trading tips to help you navigate the stock market successfully. Happy trading!