Gold – the weakness returns
|Weekly chart:
The big picture in the weekly chart is very clearly showing the current weakness in the market. The efforts of the last few weeks came to a premature end at $1375.2; following this, the price went back into the green correction zone. Triggered by the political turbulence, however, the market collapsed considerably, meaning that at the end of this week, the price finds itself back at approx. $1208. The problem with this is that the correction zone of this young uptrend ends at $1203.10. The buyers should now slowly start returning to the market, otherwise it will get very uncomfortable.
Daily chart:
In the small trend, the daily chart is already in an intact downtrend with a correction zone between $2141.5 and $1337.5. The weekly low of the past week is located at $1203.1. The next recovery phase could lead the price back into the red box. However, as soon as reversal signals pop up there, we have to expect a continuation of the downtrend. Traders in this trend size, therefore, must remain patient when it comes to an entry.
Hourly chart:
In the intraday, too, the current weakness of this precious metal can be seen. From the perspective of the hourly chart, in the medium trend we can see a still-young downtrend with a correction zone between $1211.6 and $1233.3. Although gold already came back into the red box on Friday, it did so without further momentum upwards, such that the first sellers soon stepped back into the playing field. However, they were also to unable to create much pressure, meaning that the preliminary low at $1203.1 still holds true. The short-term probabilities remain, for the moment, on the lower side.
For presentation purposes the trading software “AgenaTrader” has been used.
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