Hello everyone,
Yesterday i published an analysis of Silver in multi timeframes(Monthly-Weekly) tried to give an idea about the market trend. Today, I came up with another analysis but this time, it is Gold.
This is a monthly timeframe and as you can see, Gold made an incredible move for the past few months and cut through some of the resistance levels like a butter knife and reached an important resistance level after 9 years. Here as you can see, i drew key resistance and support levels(at least for me) on the chart and as you can see while the price is moving upwards, it also formed some sort of parabolic arc, which does not happen very often on monthly timeframe, especially precious metals such as Gold. As you can see, the previous parabolic arc ended and reversed back in September 2011 and the price made a retracement about %45(which is not shown on the chart).
Since parabolic arcs are really volatile and it's really hard to determine the reasonable support levels, i expect the price would visit 1793-1745 levels in order to find support, if the price cannot make a clear breakout through the resistance zone. My second scenario would be, a clear break of the resistance area(red) and test of extension levels, the price gets rejected and could make a retracement to the resistance zone, in order to find support. While most of the analysis is based on price action, i would like to point out the very same thing i noticed on the Silver chart as well, which is volume gets lower while the price continues to go upwards. RSI is also in the overbought zone but it's hard to guess since RSI kind of a lagging indicator but for the sake of technical analysis, RSI is around and even above of 2011 levels, so there is that.
I will observe the price behavior in the following weeks to see when Gold will end it's the parabolic rise and begins to retrace/decline to its support levels.
Thank you for reading!
Disclaimer:
None of the above are financial advice and for educational/entertainment purposes only!
Yesterday i published an analysis of Silver in multi timeframes(Monthly-Weekly) tried to give an idea about the market trend. Today, I came up with another analysis but this time, it is Gold.
This is a monthly timeframe and as you can see, Gold made an incredible move for the past few months and cut through some of the resistance levels like a butter knife and reached an important resistance level after 9 years. Here as you can see, i drew key resistance and support levels(at least for me) on the chart and as you can see while the price is moving upwards, it also formed some sort of parabolic arc, which does not happen very often on monthly timeframe, especially precious metals such as Gold. As you can see, the previous parabolic arc ended and reversed back in September 2011 and the price made a retracement about %45(which is not shown on the chart).
Since parabolic arcs are really volatile and it's really hard to determine the reasonable support levels, i expect the price would visit 1793-1745 levels in order to find support, if the price cannot make a clear breakout through the resistance zone. My second scenario would be, a clear break of the resistance area(red) and test of extension levels, the price gets rejected and could make a retracement to the resistance zone, in order to find support. While most of the analysis is based on price action, i would like to point out the very same thing i noticed on the Silver chart as well, which is volume gets lower while the price continues to go upwards. RSI is also in the overbought zone but it's hard to guess since RSI kind of a lagging indicator but for the sake of technical analysis, RSI is around and even above of 2011 levels, so there is that.
I will observe the price behavior in the following weeks to see when Gold will end it's the parabolic rise and begins to retrace/decline to its support levels.
Thank you for reading!
Disclaimer:
None of the above are financial advice and for educational/entertainment purposes only!
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.
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.