Gold GC-Mini Market Analysis
The Gold GC-mini continued its parabolic ascent towards the psychological milestone of $5000. Gold continues to outperform other traditional safe havens, such as bonds and, in particular, bitcoin. A bit of caution is in order, Gold may be reaching a point where traders must consider the sustainability of such a parabolic move, also known as exhaustion. Traders are advised to consider if paying prices too far above the average price is really prudent. Savvy traders will wait for pullbacks. When a market moves this far, this fast, it often leads to a trading range as it tries to find a new equilibrium.
An interesting exercise is to go back and look at the previous gold blog posts in order to see how these target areas were successfully predicted. Then apply these measuring techniques in locating future targets.
The Weekly Gold chart
- The largest one-week dollar gain on record.
- The weekly chart is in price discovery. The market is trading at new all-time highs.
- Bull bar closing near its extreme.
- The weekly chart is always in long.
- The weekly chart broke out of a cup and handle pattern with confidence.
- This could be the third push in a wedge-type rally on a higher time frame, which often leads to a deeper, sideways pullback.
- Bears want to trap the bulls and bring price back down to the moving average.
- Bears want to test back down to previous bear bars from 12/29 and 12/01.
- Bulls want to continue the fever pitch, hitting the $5000 psychological milestone.
- Bulls are looking at the next measured move targets of $5104 and $5224.
The Daily Gold chart
- 5 bull bars. 4 of which closed near their extremes.
- No bull bar dips beneath the previous bar. The signature of a strong trend.
- The daily chart broke out of a cup and handle pattern with confidence.
- The daily chart shows a series of fractal cup and handle patterns.
- The market recently broke above the prior resistance zone. Former resistance has flipped into support.
- Buy the close and stop order entry bulls made money.
- Bears want to see back to back bear bars closing on their lows in order to gain confidence in selling. Nothing to sell at the moment.
- Bears want to test down to the pivot breaks of $4650 and then $4550.
- Bulls want to continue the small pullback bull trend.
- Bulls want to maintain space between price and the moving average.
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