Short term gold seems to be at its most critical turning point. The chart below provides the Hourly chart of Gold since the 8th of September. The area in the circle indicates the move bold but the interesting thing is the area within the circle. At a broader level there is a diamond formation that is shaping up. If the price of gold were to decline below 1004 it is likley to lead to a sharp short-term sell off that could take it to about 985 level. However if the prices were to rally beyond 1019 it is likely that gold is not only like to touch a new all time high over the very short-term, but would also rally sharply over the medium to long-term.
An expanding triangle has been forming since 16th in the hourly charts. These triangles are generally considered to be dangerous as they tend to dissipate the strength of the underlying security.
Hence it is prudent for investors to be cautious while speculating in Gold. Maybe it is the time for a violent move either way.
No comments:
Post a Comment