Welcome to Extreme Investor Network: Trendlines Indicate Higher Prices for Gold
As experts in the stock market and trading, we are always on the lookout for key indicators that can help investors make informed decisions. Today, we are focusing on the trendlines that indicate higher prices for gold.
One of the significant trendlines to pay attention to is the rising line that connects the recent May 3 swing low. This line covers a longer time frame and if gold continues to stay above it, we can expect to see the precious metal strengthen further. Additionally, gold has surpassed the downtrend line that started from the record high of 2,431 on April 12, and it has also exceeded the previous trend high at 2,378. Wednesday’s close above both these lines confirms the strength in gold.
Second Breakout of Trend Channel in Process
Yesterday’s advance in gold ended above the longer top rising channel line, triggering a second bullish breakout from the parallel trend channel. Will this breakout lead to further upside momentum? The signs are pointing in that direction. Besides the trendlines mentioned earlier, the purple 20-Day MA is a critical support level if a retracement occurs, aligning with the rising trendline at 2,334 today.
Breakout Above 2,397 Triggers Bullish Continuation
A breakout above today’s high of 2,397 will signal a bullish continuation. If this happens, the next target is the record high of 2,431, with the potential for gold to move into new record high territory. The first target after that is around 2,461/2,462, marked by the confluence of two Fibonacci levels. This level is significant as it reflects a long period of time and can indicate strong price movement.
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