Is Gold preparing for a second rally this year
Precious metals and gold stocks are gaining strong momentum.

Just before the COVID-19 market crash hit near February 25, 2020, gold began a double dip after hitting $ 1,692 on February 24. Gold initially fell from $ 1,692 to $ 1,564 and then rebounded to new highs ($ 1,704.50) on March 10, 2020. Then, as lower COVID-19 sales continued, the price of gold fell again - this time to a low of $ 1,450.90. What was interesting for us was how quickly the gold price recovered and, after this low sale, collapsed to an even higher price level. We believe that the first time a crisis event occurs, which we sometimes refer to as a "shock wave", all assets - including gold and silver - will be defeated. This is the event where traders and investors pull everything into CASH (closing positions). Then, when the shock wave ends, traders re-evaluate asset price levels to determine how they intend to use their capital. We believe that this DIP or double-dip pattern in gold is a very solid opportunity for seasoned traders to add to existing positions or to strategically target short-term upward swings in precious metals prices due to crisis events. The daily gold chart below shows the first and second slump in the gold price when the COVID-19 price slump took place. Notice how the gold price rotated down, then rebounded to new highs, and fell even lower in early March 2020. That final drop in price levels was the very low pre-bottom sell on March 21 (initiated by the US Federal Reserve). Now take a look at the current gold futures daily chart. Note the big price correction that began August 7, 2020 - the establishment of the FLAG / Pennant formation in gold. Interestingly, this peak in gold also coincides with a moderately low price correction on the NASDAQ - before moving any further up. Silver also set a price high on August 7, 2020. Now that the banking illegality report was released, markets were again shocked by selling on Monday 21st August. This time, gold fell just over 3% during the day before beginning to rebound towards the end of the day. Currently, our Fibonacci support levels are resting at $ 1,885, $ 1,815 & $ 1,790 as shown on the daily gold chart below. We believe the downward pressure on gold and silver prices could continue for the next few days before prices move up sharply. The recent low price level in gold, near $ 1,885, is in perfect alignment with our Fibonacci price target (support level). If gold has already found support near this price level, then we may be in the process of bottoming gold, which will start a major uptrend. The question for gold traders right now is, "Will the $ 1,885 level hold as support, or will gold plunge deeper in attempting to fund support? My researchers and I believe that gold has reached its current low and that gold is at $ 1,885 will hold as support, we also believe that the next move up will lead to a rebound targeting levels near $ 2,250. Note that the momentum base continues to form near the $ 1,885 level before the breakout rally trend kicks in in gold. Once it breaks the $ 2,035 mark, it should move back up very quickly. If gold breaks below $ 1,885, we could see continued bottoming to the next support level of $ 1,815. As a technical analyst and trader since 1997, I've gone through a few bull / bear market cycles in stocks and commodities. I believe I have a good pulse in the market and can time key turning points for investors and short term swing traders.





