In this edition of the Game Plan, Gareth Soloway offers an analysis of various markets, including Bitcoin, natural gas, and gold.
Soloway explains the difference between minor and major support in Bitcoin, and also notes a potential bearish flag formation in natural gas, with a downside support around $2.40 on the chart.
He goes on to discuss gold, which he considers his favorite asset for 2023. Soloway points out a potential inverse head and shoulders pattern forming on the gold chart, which could lead to a significant move higher if it plays out. He also highlights the $1,800 level as critical support for gold, and suggests that a breakdown below this level could lead to a larger move to the downside.
Daily Game Plan
Let's take a closer look at what's been happening in the market. The S&P 500 is trading flat, following the release of better-than-expected private sector job numbers this morning. However, the real action is centered around Jerome Powell's recent comments on interest rates.
Powell announced that the Fed would remain aggressive on interest rates, causing the S&P 500 to drop 1.5% - a significant move for the index. Today, Powell will be testifying in front of Congress, giving him the opportunity to walk back or reinforce his comments from yesterday. This will be a crucial moment for the market, as any changes to Powell's stance could have a significant impact on investor sentiment and the value of the US dollar.
Looking ahead to tomorrow, the jobless claims report may not have much of an impact on the markets. However, the non-farm payrolls report on Friday could lead to a stronger dollar and a sell-off in both traditional markets and cryptocurrency markets if the numbers come out higher.
Throughout the Game Plan, Soloway emphasizes the importance of technical analysis and recognizing chart patterns to identify potential trade opportunities. He also stresses the importance of managing risk and using probabilities to stay ahead of the game in trading.
Watch the full video in the link above and stay tuned for more updates on the market and potential investment opportunities by subscribing to the Game Plan with Master Trader Gareth Soloway here.
