Loading ...Is This It ?
Or is it another false dawn ? Remember my earlier comments. Firstly this was/is a bullish descending wedge terminating on the curved base or ‘bowl’ support that has been building out for 5 or 6 years. It also leads down to the CRITICAL support in the $1220 region. Secondly – nothing fundamentally changes until we fall below the $1220 support region OR break above that $1350-$1400 overhead resistance zone. Deputy chair of the FED has acknowledged they are open to rate cuts, and the trade wars aren’t going away. It’s hard to bearish on commodities at the moment, and gold/silver are so beaten down and unloved that I believe risk/reward is heavily weighted to the upside.
You certainly haven’t wavered NS. The one thing that needs to confirm is the breakdown of the $USD wedge. If this happens we might be on our way.
I agree PK. This pot has been bubbling away for 5 or 6 years now. At this point in time it’s all about the $1220 support and $1350-$1400 resistance zone. My money is firmly on an upside breakout.
As always thanks for the charts…
Welcome Sir 😉
NO it is not!
We are deep in the current daily gold/miner cycle and I suspect it will find a top mid next week then roll over!
Then down until FOMC 19 Jun
Meanwhile stocks should explode higher into a new weekly cycle and money flows will move back into stocks and away from miners.
I suspect the FOMC may bring about a good opportunity to buy into miners, but remember the miners are acting as a hedge against weakness in the stock market, and the mid cycle slow-down for stocks is still 9-12 months away.
Meanwhile the stock market “bears” will get slaughtered!
Gold’s DC absolutely needs to top next week or else we’ve got an existing top on Day 7 which would suck.
Which would mean a left translated and almost certain failed daily cycle leading into FOMC.
You are on the ball Curly Top
Well, there we have it – sounds like gold is heading to $1220 then. I just hope that level holds, because that’s the support going back nearly 20 years. A breach of that level would open up the path to less than $1000.
It appears that gold’s previous DC ended on May 2 with a low of $1267.30. There’s no reason to believe that will be breached even if gold tops today or next week some time and then continues down into its regular, orderly DCL near FOMC day. If it does, however, it’s a bad sign of a failed cycle, and only then would we have to worry about your $1220 imo.
http://schrts.co/ePbrdeBk
Thanks CT.