Gold's major support levels to watch
As gold sells off following the overreaction to positive vaccine news and a supposed election conclusion, I am looking for our downside targets. This is in my opinion will finally result in a healthy correction for gold following a parabolic move from March to August.
For now the support at around 1850 is holding, I expect this to break however. From here we can see that a 50% fib retracement from the measured move that began in March up to the high in August offers a downside target to the 1800-1820 zone. Conveniently this is also the July breakout level from which the shot to 2000 came from. This zone makes a great lower target therefore.
I am a buyer here and I expect a lot of bulls to jump in at this level. If we have the right combination of positive news regarding the corona boner and Biden / Trump saga during this period however, there is a possibility 1800 will not hold.
Beneath 1800 there are fantastic lower supports around the 1760-1770 mark however. Here we find the 200 day MA along with the lowest end of the fib retracement and it was the previous resistance level from earlier in the year (lower blue line). If Gold does make it down here it will be a very brief in and out move in my opinion. If you have money on the side and this happens back up the damn truck, you're eating duck and drinking wine this Christmas.
For now the support at around 1850 is holding, I expect this to break however. From here we can see that a 50% fib retracement from the measured move that began in March up to the high in August offers a downside target to the 1800-1820 zone. Conveniently this is also the July breakout level from which the shot to 2000 came from. This zone makes a great lower target therefore.
I am a buyer here and I expect a lot of bulls to jump in at this level. If we have the right combination of positive news regarding the corona boner and Biden / Trump saga during this period however, there is a possibility 1800 will not hold.
Beneath 1800 there are fantastic lower supports around the 1760-1770 mark however. Here we find the 200 day MA along with the lowest end of the fib retracement and it was the previous resistance level from earlier in the year (lower blue line). If Gold does make it down here it will be a very brief in and out move in my opinion. If you have money on the side and this happens back up the damn truck, you're eating duck and drinking wine this Christmas.
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