Welcome to Extreme Investor Network, where we provide you with insightful analysis and unique information about the stock market, trading, and Wall Street. Today, we are diving into the latest trends in gold trading and what it means for investors.
Last Friday, gold experienced a sharp decline below the 50-Day MA after showing a bullish trend continuation signal earlier in the day. The week closed with a potentially bearish shooting star weekly candlestick pattern, signaling a potential downward trend. A drop below the weekly low of 2,287 would confirm a bearish signal, with further confirmation on the daily chart if the price falls below 2,277.
In order to break out of this bearish trend, gold needs to close above the key resistance level of 2,344. A rise above this level, followed by a daily close, would indicate strength and potential further appreciation in the price of gold.
Looking ahead, the lower support zone for gold starts at 2,216 and extends down to 2,195. The recent breakout at 2,195 suggests the possibility of retracing back to this level. Additionally, the lower uptrend line may provide support, as it is part of a rising parallel trend channel. Keep an eye on the completion of a falling ABCD pattern at 2,252 as the first target below the May swing low.
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