MY PREDICTION FOR GOLD:
In short: Once the client sentiment settles down a little, I predict gold will begin its steady ascent to around the 1920 mark, before its fall to 1460 in the months to come.
With COVID restrictions easing across the globe, the rollout of the vaccine and life beginning to see a road back to “normality”, the price of gold has been on a steady decline.
On the chart, I have marked 2 key levels: one at 1920 and the other at 1460.
First of all, let’s talk about the 1920 level. This was the point of the 2011 *previous* all time high as a result of the global financial crisis. In the past few months, that same level has been tested time and time again, struggling to break through on multiple occasions. This resulted in 2 fake-outs above the level- showing an overall significance of this 1920 level. It is *very* unlikely that price will break this level for the forseen future.
Now let’s move on to the 1460 level- the price of gold, ultimately before COVID days. Tested regularly November- December 2019 before price took one last dip down to 1460, then skyrocketing in the months that followed. The general zone of 1450-1470 has been tested frequently in the rise and fall of the previous gold rally, further marking its significance.
So, what am I trying to say?
I believe price will make one last push to force a retest of the 1920 level before plummeting back down towards that 1460 mark. Now this could take weeks, or more likely months to drop- considering gold will be loosing almost 25% of its value. I will certainly be keeping an eye on gold as it nears the 1920 level one last time before beginning its indefinite descent down to 1460.
When do I think this will happen?
Currently, gold is approaching a support level at 1765, price is also nearing the bottom of a falling wedge AND a falling channel. So 3 confluences for a trade entry.
HOWEVER,
At the time of creating this idea, the sentiment is currently 87% long, many going long due to the recent $1.9T stimulus package. So, it is very likely the big banks will keep dropping price for a short while longer while the liquidity is still there to grab. In an ideal world, my technical analysis would be perfect. However, unfortunately my idea goes in line with the popular vote, so is almost invalid.
Once the client sentiment settles down a little, I predict gold will begin its steady ascent to around the 1920 mark, before its fall to 1460 in the months to come.
Disclaimer:
Understand that investing in any financial market is a risk. All investments and trading decisions should be based on your own judgement. By using this idea you are agreeing that you and only you are responsible for your own trading or any investment decisions that you make. Anything offered here is not investment advice nor pressuring or forcing you to use your money in any way. Resources are provided to you based on experiences; it is still your responsibility to do your own due diligence before making a decision.
In short: Once the client sentiment settles down a little, I predict gold will begin its steady ascent to around the 1920 mark, before its fall to 1460 in the months to come.
With COVID restrictions easing across the globe, the rollout of the vaccine and life beginning to see a road back to “normality”, the price of gold has been on a steady decline.
On the chart, I have marked 2 key levels: one at 1920 and the other at 1460.
First of all, let’s talk about the 1920 level. This was the point of the 2011 *previous* all time high as a result of the global financial crisis. In the past few months, that same level has been tested time and time again, struggling to break through on multiple occasions. This resulted in 2 fake-outs above the level- showing an overall significance of this 1920 level. It is *very* unlikely that price will break this level for the forseen future.
Now let’s move on to the 1460 level- the price of gold, ultimately before COVID days. Tested regularly November- December 2019 before price took one last dip down to 1460, then skyrocketing in the months that followed. The general zone of 1450-1470 has been tested frequently in the rise and fall of the previous gold rally, further marking its significance.
So, what am I trying to say?
I believe price will make one last push to force a retest of the 1920 level before plummeting back down towards that 1460 mark. Now this could take weeks, or more likely months to drop- considering gold will be loosing almost 25% of its value. I will certainly be keeping an eye on gold as it nears the 1920 level one last time before beginning its indefinite descent down to 1460.
When do I think this will happen?
Currently, gold is approaching a support level at 1765, price is also nearing the bottom of a falling wedge AND a falling channel. So 3 confluences for a trade entry.
HOWEVER,
At the time of creating this idea, the sentiment is currently 87% long, many going long due to the recent $1.9T stimulus package. So, it is very likely the big banks will keep dropping price for a short while longer while the liquidity is still there to grab. In an ideal world, my technical analysis would be perfect. However, unfortunately my idea goes in line with the popular vote, so is almost invalid.
Once the client sentiment settles down a little, I predict gold will begin its steady ascent to around the 1920 mark, before its fall to 1460 in the months to come.
Disclaimer:
Understand that investing in any financial market is a risk. All investments and trading decisions should be based on your own judgement. By using this idea you are agreeing that you and only you are responsible for your own trading or any investment decisions that you make. Anything offered here is not investment advice nor pressuring or forcing you to use your money in any way. Resources are provided to you based on experiences; it is still your responsibility to do your own due diligence before making a decision.