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Daniel Stasziek

GOLD first drop then sky high

Posted by Viktor on April 23, 2020 at 8:50am in 2020

When analysing price charts it can conflict with logical thinking and in this example; Gold should surpass any highs in these current times of the Covid-19 and economic crisis. However, the same goes with all equities which currently still hold their price levels despite the economy going down but equities so far are not following that direction. So, the logic that equities should eventually follow by going down too. Gold could also be likely to drop and in doing so will provide liquidity but on the reverse side, it could be a safe place to hide investments until the crisis passes?

The Chart below would suggest price levels should drop hard in the form of a correction, but beware this is a monthly chart so all other smaller timeframes should be carefully considered before making a Buy or Sell decision.

gold, prediction, forex, covid, economy, collapse, forexmospherians

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Posted by Viktor

Viktor
Senior Forex Market Analyst
Contributor at Forexmospherians.com
Currency Pairs USD, EURO, GBP, AUD, CAD, NZD, JPY

Comments

Viktor April 23, 2020 at 9:07am

So potentially, we are range bound and trapped between support and resistance. The market could breakout or the possibilty exists that resistance holds, the price dips down towards the last support but rebounds and turns Bull again and then breaks through the declinning resistance. Something like the example below "ABC":
Sir Gissachance April 24, 2020 at 12:19am

Great work Viktor and here is a simplistic Support and Resistance viewpoint for Gold on a weekly chart. The bias would be bull in M15 and M5 which is where I would be looking for my buy signals.
- Sir Gissachance > Sir Gissachance August 4, 2020 at 8:04pm
  
  Hi Guys,
  
  Hopefully the Gold chart and buy signal on breakout helped.
Viktor May 1, 2020 at 6:52am

Levels to watch - red lines, where bounce is possible

Gold will serve to provide liquidity in these hard times for economy, so I expect it to drop, when it reaches lows it would be great buy