Tag: Gold chart

Gold Update: Is Half Enough?

Posted on by Aibek Burabayev

Since my last major update in November, the gold futures price has increased by almost 12%. At that time, most readers had chosen the bullish target of $2,089, where the price would retest the all-time high.

The gold futures chart is due for an update as it has reached a significant point in the current retracement following its recent peak at $1,975.

Gold Futures Daily

Source: TradingView

The gold futures price had been steadily rising for three months from the start of November until the beginning of February, where it reached a top of $1,975.

However, the market was hit when the “Jobs Report Dropped A Bombshell On The Markets”, which caused a significant drop in the value of many assets, including gold.

The recent price action in gold futures has been notable, marked by a sudden drop of $100 at the beginning followed by a slower decline in pace as the price retraced almost 50% and hit $1,811 by the end of February.

The question is whether this loss of half of the preceding rally is enough to consider the current bounce as a reversal. Continue reading "Gold Update: Is Half Enough?" →

Gold Update: Pitfall Or Pit Stop?

Posted on by Aibek Burabayev

The mighty metal has almost hit the Bull Flag’s target, which was set two months ago. Gold was got close as it reached $1439 on June 25th and only had $6 left to reach that level. Usually, when the impulse of the price gets exhausted without breaking the important level or after it briefly penetrates the latter, then the price quickly retraces in the opposite direction. And that’s what we got with the gold price as the impulse initially looked strong enough to catapult the metal to the $1500 area, but suddenly it failed. Therefore, the price dropped back below $1400 to $1382. Then the buyers actively bought this drop up again to the former top, but they stopped just $1 below it and capitulated there as the price plummeted to $1386 back below $1400. These seesaw moves make traders nervous as it is dangerously volatile with more than $50 setbacks.

The question is if it is a pitfall and we shouldn’t expect any further strength of gold, or it’s just a pit stop to make a pause to accumulate a momentum for another push higher? Let’s look into the chart below to try to figure it out.

I dipped into the 4-hour time frame to show you what happens there.

Gold
Chart courtesy of tradingview.com

First of all, I would like to point out that I believe that we are just in a correction before another push higher, so I choose the pit stop option for the gold. Therefore, my chart will be based on this idea. Continue reading "Gold Update: Pitfall Or Pit Stop?" →

Gold Extends Consolidation Giving Silver Another Chance

Posted on by Aibek Burabayev

Gold and silver exchange leading roles in the market quite often, especially on the short-term charts. Last time I wrote about it silver saved gold from collapse at the start of this month. The white metal unexpectedly bounced off the earlier low reversing the drop of the yellow metal.

This time gold took the lead as its failure to break below the Bear Flag let silver lick its wounds and return above the $14 handle.

Both metals are still trapped in the middle of the range set by the earlier heavy drop, which first occurred in gold and then it was repeated in the silver market. In this post, I have focused on the local structure as the bigger picture remains unchanged.

Chart 1. Gold Daily: 3rd Leg Up Is Uncommon But Possible

consolidation
Chart courtesy of tradingview.com

The top metal couldn’t break below the trendline support of a Bear Flag (orange) and then quickly restored most of its losses coming back above $1200. It is interesting that the forecasted drop unfolded quite differently in each metal. Silver tagged the earlier trough, but gold failed even to breach the vertically sloped trendline. It looks like strong demand appeared right at the round number of the gold price in the $1200 area. Continue reading "Gold Extends Consolidation Giving Silver Another Chance" →

Gold & Silver: Falling Knives

Posted on by Aibek Burabayev

Silver has failed to complete the second leg up as it couldn’t break above the August top of $15. It is interesting that this misbehavior of the white metal didn’t surprise you as the majority of you had bet last week that silver would fail and drop below $14.2. It’s impressive how accurate your forecast was!

In this post, I would like to update downside targets as we should be prepared for the resumption of the drop in metals after pullbacks have been finished.

Chart 1. Gold Weekly: Bear Flag Targets Bottom

falling knives
Chart courtesy of tradingview.com

Last week I reminded you of the big range of trade, which requires the retest of the downside of the range to complete the setup. Continue reading "Gold & Silver: Falling Knives" →

Silver Slows Saving Gold From Collapse

Posted on by Aibek Burabayev

Chart 1. Gold Daily: Former Support Retested, Another Spike Is Possible

pullback
Chart courtesy of tradingview.com

Gold has finally reached both the AB/CD target and the former support area of $1237 (gray dashed line) as it was forecasted last month in this chart. The metal hit the maximum of $1243 on the 26th of October and then dropped like a rock as was also anticipated after the completion of a pullback. Last Wednesday the price established a low of $1212 losing $31 (-2.5%) from the top. But at the end of last week, gold restored almost all of its losses, closing just below the former support at $1233.
Continue reading "Silver Slows Saving Gold From Collapse" →