Gold: Pullback to $1955/50 Would Be an Excellent Buying Opportunity
2023.10.25 04:45
Gold broke lower to my next target and an excellent buying opportunity at 1955/50. A low for the day exactly here at 1953 and a very quick recovery to 1977 for a 20-point profit.
Try this again today with need stops below 1945. After yesterday’s move lower, it looks to me that we are forming a bull flag in a consolidation pattern to ease severely overbought conditions. Eventually, we are expected to continue higher but we must wait for the bull flag to complete for the buy signal. Until then expect some more sideways action.
A break above 1977 would suggest a breakout & initially targets Monday’s high was 1982. If we continue higher we could retest 1995/97. No sell signal yet so a break above 2000 means the next target of 2020 is certainly possible this week.
Gold 4-Hr Chart
A break below 1945 however is a sell signal targeting 1940/38 and perhaps as far as 1928/25 for profit taking on any shorts.
December futures unexpectedly broke the best support for this week at 8650/8600 for a sell signal going into the end of the week as stated yesterday. If you did switch into a short position on the break prices collapsed by another 250 ticks to what should be key support at 8300/8250. Longs need stops below 8210.
A break lower is a sell signal targeting 8150 and probably as far as 8080/8060.
WTI Crude 4-Hr Chart
