Predicting Gold Prices: Potential Volatility Ahead with Emerging Pennant Pattern

Welcome to Extreme Investor Network, where we bring you the latest insights and analysis on the Stock Market, trading, and everything related to Wall Street. Today, we are focusing on gold and the key levels to watch for potential trading opportunities.

Bullish Above 2,335

Gold is currently at a crucial juncture, with a breakout above 2,335 signaling strength and potential further upside. Last week’s high of 2,388 is also a key level to watch, as a move above it could trigger a weekly breakout. While gold attempted to break out of a rising parallel trend channel in April, the subsequent decline in June put it at risk of a deeper retracement. However, a second breakout above the channel could lead to sustained momentum.

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Bearish Below 2,296

On the flip side, a drop below 2,296 could signal a bearish trend, with the recent minor low serving as a clearer signal. Additionally, a break below the three-week low of 2,287 would confirm a breakdown in the price.

Possible Double Inside Week

If gold fails to rally above 2,342 by the end of the week, we may see a double inside week formation. This suggests price contraction, typically followed by increased volatility. The direction of the breakout from this pattern will be crucial in determining the next move for gold. A breakdown is currently more likely, but a sustained support level and a bullish breakout could change the outlook.

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Keep an eye on our economic calendar for updates on today’s events that may impact the market. Stay tuned to Extreme Investor Network for more expert analysis and trading insights. Happy investing!

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