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RE: GOLD's BEEN INSIDE THIS TRIANGLE FOR LONG TIME ...IT's TIME FOR A BREAKOUT TO THE UPSIDE

in #gold7 years ago

In general the smartest way for me would be to analyse fundamentals and then act accordingly. In my oppinion wealth is created long term (over years). No one is an oracle and no one knows which direction a stock or an asset will go short term (except you have valuable insider information)

When there is very low fundamental information available technical analysis becomes more important (as we can see in some cryptos that appear to only act upon technical analysis). Also technical analysis is difficult, you can draw a line in much different ways. We in the western world use Trendlines, EMAs or SMAs, RSI, Bollinger Bands etc. Japanese for example like to use Ichimoku clouds.

There is a ton of indicators, which ones are you going to use? Which ones is the majority of people going to use that trade the asset? In the end its all mass psychology.

Also an important fundamental news triggering panic sell/buy will destroy any technical analysis.

I would analyse fundamentals to determine the general trend and also the potential of the asset/stock in the future. Then take technical analysis as a helping tool to verify my decission if it is a good choice to buy in/sell.

Gold is an asset (it doesn't produce anything) and acted as a store of wealth for a long time. Gold historically tends to preserve its value over time (speaking of very long periods ---> 2000 years or so). I would store some of my assets in physical form and not touch it for a long time in case some crysis happens.

If you are scared of market uncertainty or you suspect it to happen you can buy gold as well to evade this. Gold price could be a victim of price manipulation as well since it is the indicator of how scared people are and sometimes people are not wanted to be scared since this will inflict more mass panic sells.

I would buy Gold only for storing wealth and not speculation purposes.

We got crypto for that :D

That said I believe in general that the gold price rather tends to go up then to go down at the moment. But this is only my own humble oppinion.