Welcome to Extreme Investor Network! Today, we are diving into the latest market analysis and insights to help you navigate the ups and downs of the stock market.
Weekly Breakdown Triggered
This week, a bearish breakdown from the previous week’s low of 2,370 has been triggered. This signals weakness in the market, with gold trading within a large consolidation pattern since hitting a new record high of 2,431 in April. As the retracement continues, we can expect to see support tested around the bottom of the pattern, with an extended target for the falling ABCD pattern at 2,312. Keep an eye on this level as it aligns closely with the bottom trendline of the consolidation pattern.
Strong Support Starts at 2,294
Looking ahead, strong support lies at earlier swing lows of 2,294 to 2,287. A decline below these levels will confirm a bearish breakdown from the consolidation top. By targeting the 2,312-zone, we can see that the current retracement aligns with previous declines of 6.7% and 6.3%, providing valuable insights into market movements.
Weekly Trend Indicator May be Challenged
It’s worth noting that the 20-Week MA is marking support just below this week’s low at 2,353. This line has been a key indicator of dynamic support for the uptrend since October 2023. A decline below this level could trigger more aggressive selling, potentially leading to a downside target around the internal uptrend line or the 161.8% extended target for the falling ABCD pattern at 2,266.
Stay informed with today’s economic events by checking out our economic calendar for a comprehensive overview.
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