Gold on strong support



In direct comparison to silver, the past few days of trading in gold have been extremely sobering.

Since the movement low on November 20, the precious metal has only gained a meager 1%. In contrast, silver shot northwards by an incredible 24% in the same period of time!


What's next?


After the previous downward impulse, gold (XAUUSD) is at the support zone that has existed since the end of November. An exhaustion of the current movement fractal can currently be seen, which makes a corresponding reaction on the long side likely.

If the said support level (green zone) is not lastingly undercut, from a statistical point of view the following extent of reaction can be expected on the long side:


Minimum correction: USD 1,801, probability of occurrence approx. 67%.

Normal correction: USD 1,811, probability of occurrence approx. 50%.

Maximum correction: 1,821 USD, probability of occurrence approx. 33%.


If, on the other hand, the USD 1,764 mark breaks, further discounts are to be expected and the situation must be reassessed.


Note:


Three special analysis methods are used within our trading strategy. Only partial aspects were published in this article. Despite careful analysis, Global Investa does not accept any liability for the content, topicality, correctness or completeness of the information provided. In particular, the information provided does not constitute investment advice, purchase recommendations or investment brokerage and can in no way replace investment-specific advice from a professional investment advisor who takes into account the individual economic circumstances and the level of experience of the customer.