Loading ...Gold is Gunning for the Gap – (we are heading lower)
A quick update on gold. What has happened in the last two trading days is that gold has failed to take out the obvious resistance line (see chart below) and instead of making its move upward, has signaled the decline will continue. This then led me to look at what kind of support levels lie below and I immediately spotted a gap that has never been filled.
By coincidence, the bottom of the channel highlighted in yellow is right in the range of that gap.
And so that will be our interim target for the continuation of the decline which has now commenced. There are other means to measure and weigh the potential. One of those is shouting that gold will drop below the gap but we are going to take this one step at a time and stick to the highest probabilities. The distance between the current price and that barely perceptible gap is currently 89 dollars so a good short trade looks inevitable for those who enjoy futures trading as much as I do.
Interesting call Sir Farmer. I don’t trade futures but look for gold to tag it’s 50 day around 2000 this week, at least. It will be a very interesting week.
It could still do that Chartsmaster. My chart is a daily so not really appropriate for setting up trades. But it does help indicate where the trend will go even if a short term spike intervenes.
With respect … I do not consider ‘your gap’ a GAP. Reason is that the ‘upper shadow’ (on top of the body of the candle) still closes this GAP with next day closing prices’ ‘which is equal to the top of the ‘upper shadow’. All technical ofcourse but IMO NOT a GAP. Still your target might remain the same as for HORIZONTAL SUPP.
In short the two following days are Still Connected!
Any other chartist like to chime in?
I added an exploded chart view for you to prove that is a genuine gap.