At Extreme Investor Network, we closely analyze market behavior to provide our readers with valuable insights and actionable information. Today, we are focusing on the bearish behavior in the gold market that points to a deeper retracement.
The recent behavior of gold around the uptrend line and 20-Day MA is signaling bearish signs. These lines, which previously acted as areas of support, have now turned into resistance levels. Additionally, a two-day bounce earlier in the week formed a small bearish flag pattern, which was triggered today with a drop below yesterday’s low.
What’s crucial to watch now is whether gold can properly follow through to the downside, as key support levels loom not too far away. The 50-Day MA, a potentially important trend indicator, currently sits at 2,321. Breaking below last week’s low of 2,325 would be the first step before testing the 50-Day line for support.
Should the 50-Day MA fail to hold as support during a deeper retracement, a long-term top trend channel line lies just below it, followed by the 50% retracement level at 2,289. The area around the 50% retracement previously provided support during the most recent swing low at a price of 2,277, suggesting a potential completion of the current correction with a lower rising slope angle.
Analyzing the angle of ascent in gold’s price movement, we observe a decline in the slope from the initial sharp advance in February. As the trendline was broken on April 23, a new trendline was established. With the current correction in gold, a new uptrend line with a lower slope angle will likely be drawn once a new swing low is formed, altering the trajectory of the line.
Stay tuned to Extreme Investor Network for more in-depth analysis and market updates. Don’t forget to check out our economic calendar for a comprehensive overview of today’s economic events. Stay informed, stay ahead, and maximize your investment potential with Extreme Investor Network.