The Effect of Sun in Capricorn on Gold
The Effect of Sun in Capricorn on Gold (21st December - 30 Days Forward)
Historically, when the Sun transitions into Capricorn, gold exhibits a 90% probability of bullish movement within the following 30 days.
Key Observations:
1. Seasonal Bullish Pattern
The Sun in Capricorn often marks a period of increased demand or positive sentiment for gold, driving prices higher during this phase.
2. Current Market Dynamics
- While many analysts predict further declines, with a potential target at $2,540 after breaking below the base level, I hold a contrarian view.
- The current price action resembles a retest of the broken base, which many expect to confirm a downtrend. However, I believe this retest will serve as a setup for the price to re-enter the base and establish a bullish trend.
3. Swing Low Opportunity
This could represent the final swing low of the year, offering a significant buying opportunity for traders who anticipate a return to higher levels.
4. Bullish Momentum Potential
Once the price reclaims the base, the structure will likely support a rally towards key resistance levels outlined in the previous analysis, leading to a bullish breakout scenario.
Conclusion:
Despite the bearish narrative and the possibility of further drops, my perspective suggests a bullish reversal is on the horizon. Traders should watch for signs of strength as the price moves back into its base, signaling the beginning of a new bullish trend to close the year on a high note.
Historically, when the Sun transitions into Capricorn, gold exhibits a 90% probability of bullish movement within the following 30 days.
Key Observations:
1. Seasonal Bullish Pattern
The Sun in Capricorn often marks a period of increased demand or positive sentiment for gold, driving prices higher during this phase.
2. Current Market Dynamics
- While many analysts predict further declines, with a potential target at $2,540 after breaking below the base level, I hold a contrarian view.
- The current price action resembles a retest of the broken base, which many expect to confirm a downtrend. However, I believe this retest will serve as a setup for the price to re-enter the base and establish a bullish trend.
3. Swing Low Opportunity
This could represent the final swing low of the year, offering a significant buying opportunity for traders who anticipate a return to higher levels.
4. Bullish Momentum Potential
Once the price reclaims the base, the structure will likely support a rally towards key resistance levels outlined in the previous analysis, leading to a bullish breakout scenario.
Conclusion:
Despite the bearish narrative and the possibility of further drops, my perspective suggests a bullish reversal is on the horizon. Traders should watch for signs of strength as the price moves back into its base, signaling the beginning of a new bullish trend to close the year on a high note.
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.