Welcome to Extreme Investor Network, where we provide you with unique insights and analysis on all things related to the Stock Market, trading, and Wall Street. Today, we are discussing the recent downward momentum in the market and what it means for investors.
The acceleration in the pullback from the new record high suggests that gold may continue to fall and test lower potential support levels if the 50% retracement area doesn’t hold. At the 61.8% Fibonacci retracement level at 2,366, we see a convergence of several indicators, including the 20-Day MA and 50-Day MA. The proximity of these indicators to the retracement zone indicates potential support levels at 2,374 and 2,358 respectively.
Following a new high breakout that failed to hold, the bullish momentum in gold has waned, leading to increased downward pressure on the price. The reversal from this week’s high has set up a bearish weekly candlestick pattern, signaling a shift in sentiment towards a short-term bearish outlook. The upcoming weekly chart may end with a bearish shooting star candlestick pattern, indicating that buyers were in charge earlier in the week but relinquished control to sellers by the end.
Looking ahead, a decline below this week’s low of 2,394 could trigger a weekly bearish reversal, putting the lower price zone target at greater risk of being reached. However, history shows that prior corrections on a weekly basis have lasted either two or three weeks, suggesting that the market may need some time to stabilize before attempting a new record high again.
For more insights and updates on today’s economic events, be sure to check out our economic calendar for a comprehensive overview of what’s happening in the market. Stay tuned to Extreme Investor Network for expert analysis and unique perspectives on all things related to the Stock Market.