⏳ Final hours! Save up to 60% OFF InvestingProCLAIM SALE

Gold's Surprising Short-Term Bullish Pattern: A Buy Signal?

Published 07/12/2023, 05:02 AM
XAU/USD
-
GC
-
CL
-

Gold: We do have a 2-month bear trend after the potential triple top pattern on the weekly chart, but in the short term, we are breaking higher from the declining wedge pattern on the daily chart - which is most often a short-term bullish pattern, so this is not a surprise.

Gold Chart

On the 1 hour chart, we could have formed a bullish inverse head & shoulders pattern & as long as we hold above support at 1930/28, I believe we have a buy signal. Longs need stops below 1926.

Targets: 1960/65 & perhaps as far as 1975/80.

Failure to hold above 1927 means we remain stuck in a sideways channel & if so, I will be lost for an idea for a few days. A break above 1940 is the next buy signal for today.

Silver appears to be trading in a bear flag pattern, but this means we have a sell signal on a break below 2250 this week - which is in contrast to the bullish idea I have in Gold above.

However, a break above last week's high at 2330 did not trigger further gains yesterday as we hold the 100-day moving average at 2345. Above here today, however can target 2360/65.

Crude Oil WTI Futures August pushing higher as expected, as we beat the 100-day moving average at 7380. Assuming I am now right about the pattern, we have a potential target of 7700/7750.

If you managed to jump on just above 7250 you got lucky - today I would try a long today at 7340/00 - stop below 7250.

Or buy a break above 7500.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.