With all the tensions going on between Russia and Ukraine, the Federal Reserve adjusting interest rates and supply chain disruptions among so many other moving components, it appears that good old GOLD still rallies on uncertainty!
The market HATES uncertainty! However, gold historically benefits from it.
During last week’s heavy index drop, gold spiked through the resistance I had indicated to my students in the $1,940 handle.
While that presented a great opportunity to buy the market as it broke prior resistance, which is now acting as current support and taking advantage of a quick profit, the great question remains…
If price settles above the ascending channel top in the $1,940 handle, preferably on a weekly basis, that should put gold on the trajectory of testing the ascending full channel extension currently in the $2,070 handle.
This would be expected in three to five weeks or so.
If tensions settle and the overall markets begin to recover, gold has support in the ascending areas of $1,905, $1,877 and $1,817.
Regardless of which direction gold trades in, there are some key areas traders should be well aware of, which I’ve indicated on the chart above.
I’m not a gold trader. However, my personal exposure to gold is in owning the physical asset.
When the market dips, I buy that shiny stuff and hide it well.
Full disclosure: I have no intention of trading gold in either direction anytime soon.
Rules to Live By
“It’s the possibility of having a dream come true that makes life interesting.”
― Paulo Coelho
Until next time, I wish you a beautiful and blessed day!
Yours In Trading Success,
Anthony Speciale Jr.