Welcome to the Extreme Investor Network, where we provide unique insights and analysis on the stock market, trading, and all things related to Wall Street. Today, we will discuss the current situation in the market and explore potential opportunities for investors.
Reached Potential Resistance Zone
As of now, there are two rising ABCD patterns that have hit targets at 2,660 in the market. This marks a potential pivot level where resistance could trigger a pullback. However, an upside breakout through this range could signal a continuation of the bull trend. Keep a close eye on the 2,675-price level, as it is nearing the high of the resistance range.
Additionally, in the short-term, gold seems to be getting extended with five consecutive days of gains. The relative strength index (RSI) oscillator shows that gold has reached overbought levels. While this does not guarantee an immediate pullback, breaking today’s low of 2,650 could increase the likelihood of a downward correction.
20-Day MA is Key Support
In case of a pullback before reaching new highs, the area around the 20-Day Moving Average at 2,553 is a crucial support level to monitor. The 20-Day MA has acted as strong support since the breakout on August 9th. Keep an eye on other support levels such as this week’s low of 2,614 and the prior trend high of 2,600. Additionally, observe the short internal trendline that is above the 20-Day MA.
Above 2,675 is 2,724
If the uptrend continues beyond the 2,675-target zone, gold may aim for the next higher target zone around 2,724. This target aligns with an initial target from a large ascending ABCD pattern that originated from the February swing low. With the long-term breakout in March, gold has the potential to sustain its uptrend towards higher prices. The exact path to reach these levels remains uncertain.
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