$XAU/USD (XAUUSD.CFD)$ Gold retracement at low position sign...

$XAU/USD (XAUUSD.CFD)$ Gold retracement at low position signal: Two technical charts prove the arrival of the "precious metal bull market"!

Finance Sector· 38 minutes ago

2 minutes

On Tuesday (April 23), gold breathed at $2,303 due to eased tensions in the Middle East and reduced risk aversion. However, independent precious metalsTechnical analysisanalyst Mike Roy stated that from a technical chart perspective, there have been significant fluctuations in silver/euro and Dow Jones/gold, providing key evidence that the precious metal bull market is indeed underway.

Mike mentioned, "In 2023, we looked at the charts of silver/euro and Dow/gold, and both are on the verge of significant long-term breakouts."

"Since then, it seems that the breakout has occurred, providing key evidence that the precious metals bull market is indeed underway. It's time to review these fascinating charts."

He continued, "We will start with silver/euro and point out that the breakout we are looking for comes from the bull flag launched from the 2020 COVID-19 low. We can see that in the past few months, the breakout has indeed been impulsive. Given that the flag has been consolidating for 3.5 years, there is definitely enough suppressed energy to drive the price to its 103% measured move. This is very important, as such a trend will lead the price to break its long-term midline channel and the historical high set in 2011. Exceeding these two targets gives confidence that the price will seek its long-term channel upwards of $60 or higher, depending on when it gets hit."

Mike pointed out, "The chart below shows the Dow/gold ratio, which has just broken the bear flag we noticed in 2023. Will this flag be the midway flag we saw in the 1970s? If so, please allow me to remind you that the measured move is approximately 3, which may also align with the descending channel touched by this ratio. When the ratio plummeted in the 1970s, not only did gold soar, but the Dow Jones Industrial Average also fell by 50% during the consolidation period from 1965 to 1982. With the decline of this ratio, I suspect similar behavior, where gold will rise when the Dow Jones remains flat or falls."

Disclaimer: This content is for informational and educational purposes only, and does not constitute a recommendation or endorsement of any specific investment or investment strategy. More information.

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