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Gold (GC) Consolidating Strong Bounce Off 2023 Low

Gold (GC) Consolidating Strong Bounce Off 2023 Low

Posted March 15, 2023
Darren Chu
Tradable Patterns

Gold (GC) Consolidating Strong Bounce Off 2023 Low

Gold (GC) is consolidating for a second straight day after the massive surge off last week’s low just above the 2023 low.  A further drift lower ahead of the weekend should find support around the 38.2% Fib retrace of the February to March slide.  GC is less likely to retest the psychologically key 1800 whole figure level before month end than it is to retest the February high in the same period.  GC is in the advanced stages of what appears to be a Bull Flag consolidation since August 2020.  Watch for volatility today 830am EST following the US core PPI, retail sales, Empire State Manufacturing index and PPI, and after Friday’s US preliminary UoM consumer sentiment.  The escalation in the Ukraine-Russia conflict deserves close monitoring.  Monitor as usual the escalation in the Ukraine-Russia conflict.  Congratulations to paying subscribers who benefited from the Nov 2, 2022 analysis suggesting that GC was in the early stages of forming a major bottom.  The weekly RSI, Stochastics and MACD are bottomish but weighed by the tiring daily RSI and Stochastics.  I am looking to enter long in the green zone (of the daily chart), targeting the red zone for Tuesday.  The amber/yellow zone is where I might place a stop if I was a swing trader (although in my personal account with which I seldom hold overnight I sometimes set my stops tighter).  Click here for analysis on SILVER, VIX

Source: Interactive Brokers TWS

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