Gold Takes A Dive!
Gold was on a strong move to the upside since finding support in August 2018 and rose by 46%.
All trends come to an end at some point but Gold has recently come to a sharp halt.
Despite the recent decline, due to the recent health epidemics that are affecting the global
markets, the trend may not be over just yet.
Price created a high at $1,703 on March 9th 2020 but has since declined by over 12%.
At first glance, things don’t appear to be going well for Gold but price has now found comfort
at a support level which may stop further declines.
There are two levels of support holding price up. The first one is the 200 simple moving.
Price did trade below the 200sma but has now moved back above it. This gives us an idea that
this area may hold strong going forward.
The second one is the $1,500 round number which is a psychological area of support which price
struggled to break through in 2019. It appears to be causing a problem for the sellers now and
helping to assist the buyers in keeping price up.
Right now the market is rattled by recent global events but once the dust settles and if Gold
remains above support then it may not be long before we see a resumption of the uptrend.
We need to stand aside for the meantime until we see further confirmation of a continuation
of the bull trend.
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
All trends come to an end at some point but Gold has recently come to a sharp halt.
Despite the recent decline, due to the recent health epidemics that are affecting the global
markets, the trend may not be over just yet.
Price created a high at $1,703 on March 9th 2020 but has since declined by over 12%.
At first glance, things don’t appear to be going well for Gold but price has now found comfort
at a support level which may stop further declines.
There are two levels of support holding price up. The first one is the 200 simple moving.
Price did trade below the 200sma but has now moved back above it. This gives us an idea that
this area may hold strong going forward.
The second one is the $1,500 round number which is a psychological area of support which price
struggled to break through in 2019. It appears to be causing a problem for the sellers now and
helping to assist the buyers in keeping price up.
Right now the market is rattled by recent global events but once the dust settles and if Gold
remains above support then it may not be long before we see a resumption of the uptrend.
We need to stand aside for the meantime until we see further confirmation of a continuation
of the bull trend.
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
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