This is not my usual practice. As I normally do not share my views on individual stocks. But for educational purpose, I am just demonstrating how one could use Strongerhead setup on individual stocks for their analysis.
I’m not a fundamentalist. But if you were to base Gold on its fundamental, Gold will be higher in the long run. For the shorter term, what is its outlook? Let’s take a look at Gold’s chart.
Gold has broken its support at 1500. Right now, it does not look like it wants to go lower, as it rallies back with a vengeance from its low at 1321.5 to 1470.5.
On the weekly chart of Gold, it is sitting near under value zone (lower channel). EMA, MACD and RSI all suggest it is still in its down trend. But no one stocks goes downhill in a straight line. There’s a high chance this is just a rally from its low.
On the daily chart of Gold, It has moved towards it upper channel zone, RSI is near its overbought zone.
Summary:
Mid term view:
Gold is still down.
Short term view:
Gold is in a short term up trend. Taking leadership from the weekly chart, the benefit of doubt favours the bears. This is perhaps just a short term bounce below it heads downwards again.
However, if Gold breaks and stay above 1500, that would suggest a change of behaviour.
Cheers
Strongerhead ways to becoming a better trader
NOTE: All information provided “as is” for informational purposes only, not intended for trading purposes or advice.
