GOLDhas completed a full retrace back to historical support around the 1670-1680 zone. This area has help support multiple times in the past making it rather significant.
With this full retrace came a fantastic buying opportunity (especially for stackers) that I personally took advantage of. I do not trade paper metals but simply use the charts to time great stacking opportunities for the long term.
Silver had built a long term consolidation zone with similar support structure in place before breaking down lower. Check the image below for similarities. :) If the 1670 level is lost on a higher time frame, Gold could slide lower but not all hope is to be lost or Bearish, we do have good news!
Price action has looked to formed a bottoming tail on the 3 day with some momentum building in the indicators. Check the Stochastic RSI and watch for the cross to stay true and close above the 20 level while the MACD Historgram has flipped colors and looking for its bullish cross as well. Since Gold is such a massive market its always good to use the lower time frames to time entries and get a early warning of what could happen on the higher time frames. Such as - 1 Day flips bullish before the 3D which flips bullish for the 1 week and so forth.
Buttttt, there is a catch. Theres always a catch. price could get hammered back down for a retest or collapse of this support area after the next Fed announcement which I believe is the 27th of July.
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All things going in Golds favor.
MACD looking good, SRSI peaking above the 20 level and the FED being Dovish has helped as well. Which we shouldn't hear anything from them again until September.
Getting above 1780 will be critical to regain this level and look to move higher.
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Seems that was in fact the absolute bottom for Gold as we are quickly approaching the 1,800 level with a nice MACD bullish cross inbound. :)
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Jump over to the 1 Week Chart - Gold continues to rally for the 4th consecutive week. Albeit, this weekly candle has basically just opened.
We just closed a 3 White Solders Candle pattern which is a Bullish reversal pattern often found at the bottom the trend. Posted my thoughts on Twitter around that. :)
Currently testing the 100EMA and long term trend line. You can see where price action interacted with both levels many times in the past as support or resistance by the yellow circle highlights.
Tomorrows CPI numbers could be the push Gold needs to reclaim some serious ground and levels. With a HTF close above the 100EMA and trend line I think we could very well see a 2k+ Gold ounce before the end of the year.
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