- March 8, 2022
- Posted by: Tradingshot Articles
- Category: Commodities
Gold has seen a rapid rise in recent weeks as investors seek safe haven shelter during the start of the Ukraine – Russia war. The result has been an aggressive detachment of the price from its 1D MA50 (blue trend-line), where Gold has been trading around using it as a pivot since August 2021.
There is a long-term Channel Up involved so, as long as Gold manages to make 1D candle closings within it (roughly below 2050), it is more likely to see a relief pull-back to the 1D MA50 again.
On the other hand though, a consistent close above the top of the Channel Up could set course for a new All Time High (ATH) at 2200. As you see, this case is supported by the hyper aggressive May – August 2020 fractal. After a consolidation (blue ellipse pattern), the price broke to the upside and a Channel Up (green) fueled the final rapid rise to the ATH at the time. Right now, the 1D RSI seems to agree to the scenario that we’ve just breaking above the green Channel Up. Be prepared to trade according to the 1D candle closings.
P.S. As an investor, it may be useful for you to trade based on the long-term pattern. Going back in my literature, see how Gold now broke above the Handle of its multi-year Cup & Handle pattern, potentially eyeing prices as close as $3000 within this decade: