Are you keeping a close eye on the gold market? The recent price action suggests a potential retracement may be on the horizon. Gold is showing signs of closing weak, both on the daily and weekly charts, indicating a possible deeper retracement in the near future. This week’s candlestick pattern is shaping up to be bearish, with a potential trigger point at 2,303. As the short-term 8-Day MA is at risk of being broken, we may see initial retracement levels around 2,282 and 2,256, based on Fibonacci retracement levels.
The relative strength index (RSI) momentum oscillator is also signaling a potential downturn, with a double top formation and a retreat from overbought territory. A correction could lead to a test of the 20-Day MA, currently sitting at 2,249. This level has not been tested since the breakout from a symmetrical triangle pattern in late February, so a retest could be in the cards.
While short-term weakness may be in store for gold, the long-term bullish outlook remains intact. The recent breakout from a multi-year basing pattern suggests that any retracement could be a temporary pullback before the next leg up. As always, market movements can be unpredictable, but staying informed and following key indicators can help navigate the ups and downs of the market. Stay tuned to Extreme Investor Network for more insights and analysis on the stock market, trading, and more.
