Gold surged earlier in the year as inflation raged and geopolitical worries grew. However bearish things seem to be happening since then.
The first pattern on today’s chart is the March 8 high at $2,070. It was slightly below the August 2020 high of $2,075.28, resulting in a double-top pattern. The long period of time between the two peaks could mean that significant resistance is now in place.
Second, consider how this year’s peak came shortly after gold escaped a triangle in late February. XAUUSD’s inability to follow through on that breakout suggests limited buying interest in the yellow metal.
Third is the lower high in mid-April. So you have: a breakout one month, a rejection the subsequent month and a lower high the following month. If that wasn’t enough to dispirit the bulls, next came a sharp selloff that brought prices back to the 200-day simple moving average (SMA).
The slide also landed gold near $1,800, an old high from 2011 and 2012. A slide back under this level could potentially trigger further selling -- especially if the 8-day exponential moving average (EMA) remains below the 21-day EMA.
These patterns could be relevant with non-farm payrolls due on Friday and the next Federal Reserve meeting on June 15.
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TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. You Can Trade, Inc. is also a wholly owned subsidiary of TradeStation Group, Inc., operating under its own brand and trademarks. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com/important-information.
The first pattern on today’s chart is the March 8 high at $2,070. It was slightly below the August 2020 high of $2,075.28, resulting in a double-top pattern. The long period of time between the two peaks could mean that significant resistance is now in place.
Second, consider how this year’s peak came shortly after gold escaped a triangle in late February. XAUUSD’s inability to follow through on that breakout suggests limited buying interest in the yellow metal.
Third is the lower high in mid-April. So you have: a breakout one month, a rejection the subsequent month and a lower high the following month. If that wasn’t enough to dispirit the bulls, next came a sharp selloff that brought prices back to the 200-day simple moving average (SMA).
The slide also landed gold near $1,800, an old high from 2011 and 2012. A slide back under this level could potentially trigger further selling -- especially if the 8-day exponential moving average (EMA) remains below the 21-day EMA.
These patterns could be relevant with non-farm payrolls due on Friday and the next Federal Reserve meeting on June 15.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. You Can Trade, Inc. is also a wholly owned subsidiary of TradeStation Group, Inc., operating under its own brand and trademarks. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com/important-information.
