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The Gold Mine

Gold is considered to be a safe haven and serves as a form of insurance against adverse economic events. On Thursday, Gold surged more than 1%

*Ding Ding* 

Are you guys aware that the Gold price has yet again revisited the $1,700 area? It is the highest level since European debt crisis in 2013. In usual cases, the gold price rises whenever a market plunge occurs. 

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The reason gold tends to be resilient during a stock market crash is that the two are negatively correlated. In simple words, when one goes up, the other tends to go down. Gold is considered to be a safe haven and serves as a form of insurance against adverse economic events. On Thursday, Gold surged more than 1% as the number of Americans filing unemployment claimed to have shot to a record high. 

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So when the gold surged up on Thursday night, is there anything to be looked out for on Friday morning? 

  1. The GOLD ETF. Generally, Gold ETF tracks the movement in the gold price. When the gold price moved higher, the Gold ETF will have to track the movement and go higher. Gold ETF has been moving higher since January this year, tracking the rally in Gold price.

Those who intend to trade on the rally of Gold can consider trading the swing in gold price through Gold ETF in Bursa Malaysia.

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  1. Speculative trading on Jewelry counters.

Looking over at M+ Wiz, it detected a Resistance Breakout on both POHKONG (5080) and TOMEI (7230) at 9.21am and 9.13am respectively. Both stocks had triggered the rule Resistance Breakout with High Volume. It indicates strong participation in the bullish price movement which may suggest higher price movement ahead.

POHKONG (5080)

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POHKONG was triggered at RM0.455 when the volume traded surged at 9.21 am. It went as high as RM0.48 before the stock price retraced. This came along with a chart formation: PENNANT breakout at RM0.425. 

TOMEI (7230)

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Similarly, TOMEI was triggered at RM0.345 as having resistance breakout with a significant increase in volume transacted. Unlike POHKONG, there is no PENNANT formation here, but still technically encouraging given the chart built a consolidation block (box area) near resistance and breakout.  

To Find out How to get M+ Wiz, Click here: #GetWiz

Disclaimer: This is not a buy or sell recommendation. We encourage you to research on the particular stock or get in touch with your remisier/dealer for assistance before making your decision.

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Swift recovery

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