Pattern play Vista Gold
Upside breakout from a bearish channel.
Share this:
Vista Gold (VGZ), a gold mining company, gapped up and broke out to the upside of a bearish channel that has been in place since early-August. The RSI is over 60 and has also crossed above a trendline. The simple moving averages (SMAs) are arranged in a mixed to bullish manner, as the 50-day SMA is above the 20-day SMA and the 20-day SMA is above the 200-day SMA. If the 20-day SMA can manage to cross above the 50-day SMA, it would be a bullish signal. It would seem that the catalyst is the price of Gold rising, which appears to be the result of the US Dollar making new 52-week lows. If price can manage to close above the upper trendline of the channel, it would be a bullish signal. If that occurs price could rise towards 1.34 and possibly 1.45. If price slips, traders should look to the 50-day SMA for support, considering that price was previously using it as resistance. If price fails to be supported at the 50-day SMA, then the last line of defense is 0.93. If price gets below 0.93, it could be a signal for a new down trend.
Source: GAIN Capital, TradingView
Source: GAIN Capital, TradingView
Vista Gold (VGZ), a gold mining company, gapped up and broke out to the upside of a bearish channel that has been in place since early-August. The RSI is over 60 and has also crossed above a trendline. The simple moving averages (SMAs) are arranged in a mixed to bullish manner, as the 50-day SMA is above the 20-day SMA and the 20-day SMA is above the 200-day SMA. If the 20-day SMA can manage to cross above the 50-day SMA, it would be a bullish signal. It would seem that the catalyst is the price of Gold rising, which appears to be the result of the US Dollar making new 52-week lows. If price can manage to close above the upper trendline of the channel, it would be a bullish signal. If that occurs price could rise towards 1.34 and possibly 1.45. If price slips, traders should look to the 50-day SMA for support, considering that price was previously using it as resistance. If price fails to be supported at the 50-day SMA, then the last line of defense is 0.93. If price gets below 0.93, it could be a signal for a new down trend.
Source: GAIN Capital, TradingView
Source: GAIN Capital, TradingView
Related tags:
Latest market news
The complete CFD trading experience
Award-winning platforms, competitive spreads, low commissions and dedicated support.
We live and breathe the markets and are dedicated to helping traders realise their ambitions as we continue to set the industry bar.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
EUR/USD, USD/JPY Outlook: Oil, yields and an FX identity crisis
Crude oil is setting the tone across rates and FX, leaving EUR/USD vulnerable and USD/JPY caught between higher Treasury yields and the growing threat of intervention
Gold forecast: Rising yields become too hot for gold, but the outlook is far from bearish
Gold and silver prices took a plunge today, with the former down 3% and the latter falling some 5% by mid European session, before bouncing off their lows. The losses come after the metals remained largely supported until last week, despite the big dollar rally and surging bond yields as we have seen in recent weeks. But it simply got too much, and the metals succumbed to pressure today.
Gold Dips Below Three-Month Uptrend, Bitcoin Pulls Back from Nine-Month High
Gold has dipped below its three-month uptrend, while Bitcoin has pulled back from a nine-month high as U.S. bond yields test levels last seen in 2004 and 2007. Risks build as Fed rate-hike expectations remain above 70%, while the Dollar Index holds near yearly highs.
StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation.
StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.