Gold bugs eye a move to the all-time high
Gold reached a 12-month high and is within striking distance of its all-time high.
Its bullish trend has accelerated on the hourly chart and is now consolidating within a potential pennant pattern, which projects a target around 2065. Incidentally this is just beneath the all-time, which is a likely area to witness a pullback due to profit taking.
Volumes were rising during the latest rally into the highs and reduced whilst prices consolidate to show strength in the move. Although a slight negative is that the OBV (on balance volume) has not broken to a new high, along with prices.
And given the rally stalled around the weekly and monthly R2 pivots, we are equally on guard for a pullback than we are for the rally to extend.
- The pennant requires a direct breakout to remain valid, although the reward to risk is undesirable.
- If we see a break above 2050, bulls can seek continuation patterns on lower timeframes towards the 2065 target.
- Otherwise, bulls can seek bullish setups around the 2030-2032 support zone or bullish trendline which could provide an improved reward to risk ratio.
Its bullish trend has accelerated on the hourly chart and is now consolidating within a potential pennant pattern, which projects a target around 2065. Incidentally this is just beneath the all-time, which is a likely area to witness a pullback due to profit taking.
Volumes were rising during the latest rally into the highs and reduced whilst prices consolidate to show strength in the move. Although a slight negative is that the OBV (on balance volume) has not broken to a new high, along with prices.
And given the rally stalled around the weekly and monthly R2 pivots, we are equally on guard for a pullback than we are for the rally to extend.
- The pennant requires a direct breakout to remain valid, although the reward to risk is undesirable.
- If we see a break above 2050, bulls can seek continuation patterns on lower timeframes towards the 2065 target.
- Otherwise, bulls can seek bullish setups around the 2030-2032 support zone or bullish trendline which could provide an improved reward to risk ratio.
Trade closed: stop reached:
Ouch! Hawkish comments from Fed's Waller (inflation is too high and we've not done enough to fight it) coupled with 1-year consumer inflation spiking 0.8 pct points sent the US dollar broadly higher, and saw gold print a bearish engulfing day with a high around 1950.
Upwards and onwards!
Upwards and onwards!
