All the action I expected to happen in gold over the course of the winter looks to have been condensed into a few trading days, with a close at an all-time high on Friday and an explosive move higher on Sunday evening. Hardened gold bugs and seasoned traders in the space, however, will not be surprised (unfortunately) by the massive reversal of the gold price following that thinly supported Sunday evening pop into the unknown. How pertinent is this reversal from a technical perspective?
The weekly chart below shows some support levels. In my opinion, the yellow box seems like the most probable area to set a target.
Zoomed into the daily timeframe, there is very minor support closer to current prices as well. To me, though, as of now, that level looks ripe to be broken to the downside soon.
A repost of the long-term Bitcoin chart I’ve been showing this year. Bulls have broken through 42k, which was a stretch target for me on this run (going back months), and momentum stochastics are well overbought on the weekly timeframe; the thing is, it could stay that way. That said, and although I really don’t think THE top is in for Bitcoin longer term, some kind of correction is imminent in the short term, in my opinion.
Thanks and good luck.
