Technical Analysis: Gold Is Building Solid Support June 28, 2022
“For the past month, gold has been consolidating within a tight range around $1850. The data suggests the next move is most likely up. Lots of indicators have bottomed, which leaves little downside remaining. The market has also priced in an extremely aggressive Fed and held up very well over that time.
It’s very possible that the jobs data in two weeks will be weak. This could give the Fed the cover needed to start rolling over, proving that the Fed may be close to done with its inflation fight.”
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“Gold has carved out a very nice bottom in the last month above $1800 and staying closer to its current resistance of $1850. It’s been making more attempts at $1850 than $1800. The conclusion last month was “Neutral” waiting for a break above $1850 or below $1800. While a break above $1850 might not be immediate, it seems far less likely that $1800 will break to the downside.”
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“This week was the first time in a long time that a big move down in GDX/Gold Miners did not front-run a move down in the metal. Gold was very flat both Thursday and Friday, yet the GDX saw a massive +4% sell-off on Thursday and then gained much of it back Friday, rising 2.6%.
“Typically, the miners lead the metal but this week looked like a head fake. Not only that, but GDX finally made a new lower low in the current up move which could be a reset on the technical analysis. This means that GDX could be setting up for a monster rally if gold can break through overhead resistance.”
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https://seekingalpha.com/article/4520654-technical-analysis-gold-is-building-solid-support