Not Everything That Shines is Gold
Gold is turning up from a couple of weeks downward trend. Looking at the weekly chart, it looks like the commodity is trading in a channel of it’s just bounced off a two-year major support. If this is true, that gold is trading in a channel then this is a good opportunity to go long within the it. However, on the daily chart we see that gold has been on a downward trend and it’s only now it’s starting to turn. Also, looking at the reaction of Gold in downward trend channel, we see a similar response to the current trend reversal. In that response the commodity mainly traded side ways and then continued it’s fall. In this regard, I don’t see enough to believe that this is the bottom of a new upswing, this might be more a reaction to the increase level of noise in the economy now. Also, the volume in the 9-day moving average is showing slowing down, which is more evidence that this isn’t a reversal. Lastly MACD has shown lower highs and I’m not seeing enough in that signal to think this is a reversal.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.