Consider this: In 2008 GOLD (XAU) had dropped to around $730 and never before traded above $1000. During late 2008 we occurred the "great financial crisis", the one where everyone thought the world was going to end, where we saw the market deflate and induced us into a systemic crisis. All markets seized up, including GOLD, as the credit markets seized up, and sent us to new lows. However shortly after this GOLD quickly shot up and took off. It hit $1000 and never looked back. This makes sense when you think about it: stocks benefit from economic growth and stability; gold benefits from economic distress and crisis.
Looking at the chart above we can see that we are currently in an uptrend and have been since the start of 2017, producing higher lows and higher highs. However since 1/24/18 we have started a small downtrend seeing lower lows and lower highs. I have set our current resistance line and indicated 2 support zones. The DMI has crossed and is verifying we are in a downward trend with the ADX just beginning to peak above our signal line and the +/- crossing. We can also see on the RSI that we are creating lower highs. I have drawn a channel to indicate where we could go if we pass the first support zone. This would could take us out of the upward channel and could show we are going to drop further.
If the stock market falls, fear is usually high, and investors typically seek out the safe haven of gold. If stocks are rocking and rolling, the perceived need for gold from mainstream investors is low.
So, perhaps the ideal solution for now would be to have a stash of cash ready to deploy if we get another big decline in precious metals—but also have a stash of bullion already set aside in case the next crisis sends gold off to the races.
Thank you for taking the time to read! IF I get 15 likes I will post an update!
Happy Trading :)
Much Love
DustyPH
*all comments are welcome*
***This information is not a recommendation to buy or sell***
评论
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Touched the support and Boom! With the news and fear of a trade war... Gold is a good place to be!
评论
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Off to the races! Will we soar past the resistance with fear in the stock market and a possible trade war... Just like I mentioned before, may always want to to keep some of the gold around, could be a good time to have it!
Nice! I love gold but I don't hold any bullion any more sadly.
Liquidated that heavy yellow stuff for the digital version of it :)
I think we will see a great rally in gold soon, looks like a bullish flag here to me.
Stocks will correct a bit more and uncertainty will fuel the rally.
Bounce from 1300 to 1350+ ?
dustyPH
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@ethhunter, touched the support and took off!! Nice call. If the news of trade war keep going and actually happens gold will keep climbing
AlanSimpson
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Yes,I believe price may fall to 1289 area ,then will buy ,sell 1400 or so.Alan Simpson
dustyPH
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@AlanSimpson, thanks for the comment. And I agree. I have an order placed at 1295 with a stop loss just below the support line. I think we will see a bounce there but as always have to watch the technicals
Liquidated that heavy yellow stuff for the digital version of it :)
I think we will see a great rally in gold soon, looks like a bullish flag here to me.
Stocks will correct a bit more and uncertainty will fuel the rally.
Bounce from 1300 to 1350+ ?