The Wedge Breakdown People Expect May Not Happen
Hello traders,
A lot of people are assuming that the rising wedge in Gold will seemingly breakdown and force new and lower lows in Gold, however, the overall pattern in Gold supersedes that of any near-term technical shape. While no one can predict the movement in anything with 100% accuracy, it is likely that Gold will butcher its way through the 1700s and possibly reach the lower 1800s in April. Moreover, Gold has recently made new progressive highs in many currencies (i.e. CAD and EURO); and progressive new highs over futures, which supports higher Gold-Spot prices.
Many technical indicators also support Gold to continue a strong breakout and push through key resistance levels over 1700. At some point Gold could breakdown somewhat (i.e. have a sharper wave IV than what is shown) when equities decide to take an impulse down. All in all, we cannot assume Gold will breakdown UNTIL (if) we see another SHARP impulse down in equities.
What we can say is this week IF we are able to butcher through the low 1700s and close at a new high (above 1705) this will set the stage for a furious bullish breakout into the steep Gann angle range and 1800+ will be inevitable. On the low probability contrarian view, if we fail to close above 1700 in the near-term, this would support lower lows. However, there is insufficient support for this at this time.
- zSplit
A lot of people are assuming that the rising wedge in Gold will seemingly breakdown and force new and lower lows in Gold, however, the overall pattern in Gold supersedes that of any near-term technical shape. While no one can predict the movement in anything with 100% accuracy, it is likely that Gold will butcher its way through the 1700s and possibly reach the lower 1800s in April. Moreover, Gold has recently made new progressive highs in many currencies (i.e. CAD and EURO); and progressive new highs over futures, which supports higher Gold-Spot prices.
Many technical indicators also support Gold to continue a strong breakout and push through key resistance levels over 1700. At some point Gold could breakdown somewhat (i.e. have a sharper wave IV than what is shown) when equities decide to take an impulse down. All in all, we cannot assume Gold will breakdown UNTIL (if) we see another SHARP impulse down in equities.
What we can say is this week IF we are able to butcher through the low 1700s and close at a new high (above 1705) this will set the stage for a furious bullish breakout into the steep Gann angle range and 1800+ will be inevitable. On the low probability contrarian view, if we fail to close above 1700 in the near-term, this would support lower lows. However, there is insufficient support for this at this time.
- zSplit