How to Predict Market Movements When Approaching All-Time Highs
When markets reach all-time highs or lows, it can be tricky to forecast where they're heading. Today, let’s focus on the gold market and how to approach markets when they hit all-time highs.
Here's my method:
1. Use of Historical Channels: In this case, I’m looking at a 13-year channel on the monthly chart. I use the breadth of this channel to measure potential upward movement. This analysis has provided me with a long-term target of $3,100 for gold.
2. Fibonacci Extensions: These are a crucial tool as well. I've identified three Fibonacci extensions that fall between $3,029 and $3,100, which align closely with the target derived from the channel analysis.
Together, these techniques give a clearer picture of potential market direction when heading into uncharted territory.
Disclaimer:
The information posted on Trading View is for informative purposes and is not intended to constitute advice in any form, including but not limited to investment, accounting, tax, legal or regulatory advice. The information therefore has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient. Opinions expressed are our current opinions as of the date appearing on Trading View only. All illustrations, forecasts or hypothetical data are for illustrative purposes only. The Society of Technical Analysts Ltd does not make representation that the information provided is appropriate for use in all jurisdictions or by all Investors or other potential Investors. Parties are therefore responsible for compliance with applicable local laws and regulations. The Society of Technical Analysts will not be held liable for any loss or damage resulting directly or indirectly from the use of any information on this site.
Here's my method:
1. Use of Historical Channels: In this case, I’m looking at a 13-year channel on the monthly chart. I use the breadth of this channel to measure potential upward movement. This analysis has provided me with a long-term target of $3,100 for gold.
2. Fibonacci Extensions: These are a crucial tool as well. I've identified three Fibonacci extensions that fall between $3,029 and $3,100, which align closely with the target derived from the channel analysis.
Together, these techniques give a clearer picture of potential market direction when heading into uncharted territory.
Disclaimer:
The information posted on Trading View is for informative purposes and is not intended to constitute advice in any form, including but not limited to investment, accounting, tax, legal or regulatory advice. The information therefore has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient. Opinions expressed are our current opinions as of the date appearing on Trading View only. All illustrations, forecasts or hypothetical data are for illustrative purposes only. The Society of Technical Analysts Ltd does not make representation that the information provided is appropriate for use in all jurisdictions or by all Investors or other potential Investors. Parties are therefore responsible for compliance with applicable local laws and regulations. The Society of Technical Analysts will not be held liable for any loss or damage resulting directly or indirectly from the use of any information on this site.
The STA is the oldest technical analysis organisation in the world and to celebrate that fact, we have a free downloadable book on technical analysis here -
technicalanalysts.com
technicalanalysts.com
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.