Gold, our lovely hedge as people would call it.
I will look for a healthy retracement to occur really soon.
Divergences are awesome to trade off of especially on the longer time frames where they pay off the most.
You could literally sell off the bearish divergences on the weekly and have not only come out on the winning side of trades but for tremendous gains as well.
We've got a rounded cup formation that somewhat lines up with our all time high. I could see this continue to rally up to 1900-2000 price levels and continue to display bearish divergences before ultimately retracing down, which in my opinion seems to have a higher probability of happening soon.
For those who think gold will continue to rise as traditional markets are plummeting, let's put things into perspective:
Dotcom Market Crash of 2000 - Gold flipped bearish and had a retracement of approximately 25% to the downside.
Mortgage Crisis Crash of 2008 - Gold flipped bearish and had a retracement of approximately 35% to the downside.
Although I don't like to make predictions I'm going to make a bold one and say the markets are going to get hit much harder than ever before, mainly due to the fact that businesses and the economy as a whole, especially in the western hemisphere are in total shut down.
Not only is it all shut down but governments are giving out handouts to small businesses and individuals which explains this recent rally across all markets. It's all that funny money!
I see no reason to be bullish on Gold right now. It's due for a pullback as it continues to show overbought signals as price continues to rise. The timing is perfect and the technicals seem to be lining up.
I wasn't too big on investing in gold in the past due to its lack of volatility in comparison to other financial instruments but considering this data in front of me, I wouldn't mind taking a BUY THE DIP approach on this one and continue to add it to my long-term off-risk portfolio.
This is just my opinion and is not financial advice. I would love to know what you think. Let me know! Cheers.
I will look for a healthy retracement to occur really soon.
Divergences are awesome to trade off of especially on the longer time frames where they pay off the most.
You could literally sell off the bearish divergences on the weekly and have not only come out on the winning side of trades but for tremendous gains as well.
We've got a rounded cup formation that somewhat lines up with our all time high. I could see this continue to rally up to 1900-2000 price levels and continue to display bearish divergences before ultimately retracing down, which in my opinion seems to have a higher probability of happening soon.
For those who think gold will continue to rise as traditional markets are plummeting, let's put things into perspective:
Dotcom Market Crash of 2000 - Gold flipped bearish and had a retracement of approximately 25% to the downside.
Mortgage Crisis Crash of 2008 - Gold flipped bearish and had a retracement of approximately 35% to the downside.
Although I don't like to make predictions I'm going to make a bold one and say the markets are going to get hit much harder than ever before, mainly due to the fact that businesses and the economy as a whole, especially in the western hemisphere are in total shut down.
Not only is it all shut down but governments are giving out handouts to small businesses and individuals which explains this recent rally across all markets. It's all that funny money!
I see no reason to be bullish on Gold right now. It's due for a pullback as it continues to show overbought signals as price continues to rise. The timing is perfect and the technicals seem to be lining up.
I wasn't too big on investing in gold in the past due to its lack of volatility in comparison to other financial instruments but considering this data in front of me, I wouldn't mind taking a BUY THE DIP approach on this one and continue to add it to my long-term off-risk portfolio.
This is just my opinion and is not financial advice. I would love to know what you think. Let me know! Cheers.
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.
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.