Dobbelbottom
Gold might soon shine againGold had a downturn at 19,19% and stayed in correction sentiment, but were close to bear sentiment (20%+ fall in price from the top) .
Around price 1676$ it saw massive technical support. The technical support where in these 3 types:
- Trendline from previous lows.
- Fibonacci 0,618 based on lows from March 2020.
- Bollingerbands 1000,3 based on 4-hour chart.
After touching these 3 types og technical support, it had a small bounce back to around price 1750$. After that i felt, but this time i made a higher low with around 5$, even considering that the dollar-index rose around 1% during that same period. This priceaction made the pattern of a double-bottom as well.
I think this is a long-term view bottom, based on the technical analasis, but also on the fact that the Dow:Gold ratio at the time is 19,16 (33153$/1730$) and everything over 15 is considered as a buy oppotunity in gold.
How much it think will rise, is hard to say, but my first target would the previous high (2074$) and the second target would be around the 1,618 fibonacci expansion (2320$).
My stoploss would at the price 1670$ as a speculator, but as a long term investor in physically gold, it would be at the price of 1000$.
Disclaimer: This should not be seen as investment advise, i don't take responsibility of any other persons actions, the thing i post i just my personal ideas and should not be seen as anything else, i am not a professional investor, and do not offer investment advises.
Market Trying to ReverseWe discussed this market last week and the important intraday resistance level we were hunting short trades.
After selling off twice at this level, price is now once again looking to make another test.
Looking at the longer-term charts the trend is clearly lower and this level looks key.
This market is now attempting to make a reversal back higher and a break of this resistance would be the first step to watch for.
Thanks for your like and support.