Gold - $1400/ ounce on the Cards? - Prices to Watch
Updated
After a quiet few weeks on gold, the yellow metal appears to be failing in this most recent breakout attempt that was observed on the daily time frame.
Weekly Time frame:
This is not at all surprising when you zoom out to the weekly chart, which clearly shows excessive exuberance to the upside, rallying quite substantially outside of the 3 ATR channel (the red bands), this set gold up for a nice period of profit-taking and consolidation, a period that we are still in currently.
Monthly Time frame:
This trend is also observed on the monthly time frame, with gold tagging the top of the 3 ATR channel before retreating, the 8 period ema
is also significantly detached from the most recent price action, sitting around $1420/ ounce.
Targets:
Watch the weekly time frame for a retracement back into the 1 ATR channel (the shaded purple region), at a minimum i would expect a tag of the channel mid point (white line) at around $1460/ ounce, but the greater likelihood is a move below the mid point to tag the lower half of the 1 ATR channel, closer to $1425/ ounce.
At this point gold would have sufficiently reset it's price action to become attractive again to traders (who are still the primary near-term price drivers).
Weekly Time frame:
This is not at all surprising when you zoom out to the weekly chart, which clearly shows excessive exuberance to the upside, rallying quite substantially outside of the 3 ATR channel (the red bands), this set gold up for a nice period of profit-taking and consolidation, a period that we are still in currently.
Monthly Time frame:
This trend is also observed on the monthly time frame, with gold tagging the top of the 3 ATR channel before retreating, the 8 period ema
is also significantly detached from the most recent price action, sitting around $1420/ ounce.
Targets:
Watch the weekly time frame for a retracement back into the 1 ATR channel (the shaded purple region), at a minimum i would expect a tag of the channel mid point (white line) at around $1460/ ounce, but the greater likelihood is a move below the mid point to tag the lower half of the 1 ATR channel, closer to $1425/ ounce.
At this point gold would have sufficiently reset it's price action to become attractive again to traders (who are still the primary near-term price drivers).
Trade active
Gold appears to be moving out of the bull flag pattern that it has been trading within for the past few months, keep an eye out of this potential breakout
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