Loading ...Short Term Bearish View on Gold
This post is in line with the idea that gold has one more drop for this downturn before going on to make new bull market highs. Gold was heading down yesterday, but when the news about the FBI reopening the Clinton email case hit the wire it rocketed higher. Unlike some other members of the forum, I do not see the action in gold yesterday as bullish. First, even though the excitement of the news caused gold to breach the upper trend line, it was unable to sustain those gains and ultimately closed below that trend line at the end of the day/week. Second, the temporary breach of the upper trend line was purely a reaction to a news event, which, as we’ve seen time and time again, do not usually change public sentiment in any meaningful way for more than a few hours. Third, the GLD rallied on the news yesterday right up to Avi’s resistance level, which he has at 122.75, and then pulled back. Fourth, the miners did not even begin to deviate from the downward trajectory that they began last Thursday.
I am right there with you, I think we have another drop coming up. The miners didn’t buy the ramp up in gold on Friday. To me, it looks like the miners are in the wave 5 down – maybe an ending diagonal?
I agree with this – that a lower low is ahead of us. Maybe 2 or 3 weeks out. But it bothers me because it seems to be the consensus. I haven’t hedged a bit during this draw down (Spocker) but still feel confident we’re in a bull market. Many are starting to give up here. And thats good.