Don't Be Fooled By BEARISH GOLD
Updated
Some interesting info on Gold.
Reading a couple of articles on Gold. I feel the general consensus is Death to Dollar & Strength on Gold. I feel the Global pandemic has shifted the normal correlation across the entire market and possibly every instrument.
If you look at the spike in the U.S. 10-year Treasury yield, dealing gold a series of setbacks. This is far from over...
Coupled with the geopolitical risk component that has held up gold for decades has almost vanished too, with the shiny metal falling instead of rising from a recent flare-up in Middle East tensions.
Things are not what they seem.
From a technical standpoint only;
Main swing from the 2016 low has made a 1.618 spike and pulled back to the 100% Level (1) before shooting up to the 2.618.
Secondly - the 1.618 level on the smaller swing move is around the $1,655 level. We could see this level.
Step up to the monthly level and we can see an extended Regression channel - touch the outer channel.
Supported by monthly Stochastic pointing down.
This shows the levels of trapped traders - currently in Long positions - If you look left, we could see a repeat of this last spike down.
Xau (Gold) Strength is also falling still and has room even to the 50% level as per the strength indicator.
Drop down to the daily & we can see the price has broken the X-Trend structure to the Bearish side. As well as the XAU strength being less than the DXY in the short term.
So in the short term, we could expect some more moves to the downside.
A potential push up to the trend around 1,850 could be the current roof until the move down completes.
Disclaimer
This idea does not constitute as financial advice. It is for educational purposes only, our principle trader has over 20 years’ experience in stocks, ETF’s, and Forex. Hence each trade setup might have different hold times, entry or exit conditions, and will vary from the post/idea shared here. You can use the information from this post to make your own trading plan for the instrument discussed. Trading carries a risk; a high percentage of retail traders lose money. Please keep this in mind when entering any trade. Stay safe.
Reading a couple of articles on Gold. I feel the general consensus is Death to Dollar & Strength on Gold. I feel the Global pandemic has shifted the normal correlation across the entire market and possibly every instrument.
If you look at the spike in the U.S. 10-year Treasury yield, dealing gold a series of setbacks. This is far from over...
Coupled with the geopolitical risk component that has held up gold for decades has almost vanished too, with the shiny metal falling instead of rising from a recent flare-up in Middle East tensions.
Things are not what they seem.
From a technical standpoint only;
Main swing from the 2016 low has made a 1.618 spike and pulled back to the 100% Level (1) before shooting up to the 2.618.
Secondly - the 1.618 level on the smaller swing move is around the $1,655 level. We could see this level.
Step up to the monthly level and we can see an extended Regression channel - touch the outer channel.
Supported by monthly Stochastic pointing down.
This shows the levels of trapped traders - currently in Long positions - If you look left, we could see a repeat of this last spike down.
Xau (Gold) Strength is also falling still and has room even to the 50% level as per the strength indicator.
Drop down to the daily & we can see the price has broken the X-Trend structure to the Bearish side. As well as the XAU strength being less than the DXY in the short term.
So in the short term, we could expect some more moves to the downside.
A potential push up to the trend around 1,850 could be the current roof until the move down completes.
Disclaimer
This idea does not constitute as financial advice. It is for educational purposes only, our principle trader has over 20 years’ experience in stocks, ETF’s, and Forex. Hence each trade setup might have different hold times, entry or exit conditions, and will vary from the post/idea shared here. You can use the information from this post to make your own trading plan for the instrument discussed. Trading carries a risk; a high percentage of retail traders lose money. Please keep this in mind when entering any trade. Stay safe.
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Straight into the weekly structure - Note
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.