Gold - (Almost) Post Election Analysis

With Election proceedings still in process amidst legal challenges to a plethora of voting irregularities, i thought it would be fitting to check in with my personal favorite 'safe haven' asset.

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As you can see price has been steadily trending higher on the weekly timeframe, experiencing a few instances of profit-taking along the way (which i believe we experienced since the tremendous move in August).

the MACD is signaling that a potential bullish momentum shift may very well be taking place, i.e. a bullish overall trend that may well be signaling a trend continuation = very good.

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The overall trend is very nice, with clear separation of the moving averages and relatively minor pullbacks along the way.

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This however is what has my attention most at the moment in gold, the presence of a tentative weekly squeeze, i have highlighted the moves that occurred after the last 2 weekly squeezes that fired.

Whilst this squeeze is still forming (there may very well be a little more sideways movement for a few more candles), this lends itself quite strongly to the bullish side of things for the near-term/ mid-term for gold.

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On the daily we can see where that resistance (cause for sideways chop) may very well be coming from, as we are currently sitting just below the 50% fib retracement from the prior swing high.

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The highlighted doji candle also indicates some possible indecision, that being said i do expect that gold will push onwards to the 61.8% fib retracement with minimal effort, at which point a little bit of hesitation would not surprise me, this may very well allow the weekly squeeze i mentioned to develop.

In any case i will be eagerly watching to see how the next few weeks shape up for gold, should gold decisively clear the 61.8% level, there is very little resistance between there and prior highs, perhaps a little at around $2040/ ounce.

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A fib extension gives a possible idea of price targets, as well as potential resistance levels for the coming weeks.


-TradingEdge



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