Simple Moving Average(SMA) 50-period (red), 200-period (bold, gray)
RSI-14 with Simple Moving Average 5-period of RSI attached.
Elliott Wave Principles
Market and Price Action (patterns, candlesticks)
Intraday pivots and Intermediate-term support and resistance
Multiple Time-frame Analysis
- Following up with yesterday's post, the channel in gold held, and the market has formed a positive reversal signal (a lower RSI low corresponding to a higher price low).
- This suggests a swing projection which targets 1458. The market should stay above the 1420 level for this scenario to develop, otherwise, we might be seeing another correction decline. Then as long as the 1390-1395 zone is intact, we are still bullish.
- Looking at the daily chart, we are reminded that a clean break above 1430 has the 1490 area in sight. This is a 150% extension target, but is not necessarily resistance. The extension to 161.8% would bring the market to 1505.
- The 1390-1395 area holds key support as well. If this breaks, we can be in more significant correction towards the 1375 area, or maybe lower near 1368.
Will gold surge towards the fibonacci extension targets? We would love to hear what you think.
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