There is another set of confluent bearish patterns forming in gold right now. This points to the likelihood that gold drop lower yet again and either retests or breaks even lower than the recent lows of 1167. There is a head & shoulders pattern with a very bearish slant as well as a pennant formation. In addition there was a large bearish fake-out last week where price broke up and out of the pennant and was slammed back in immediately. This can be seen clearly in the intraday candlestick charts. The bearish pennant combined with the bearish overlapping patterns is creating a high probability scenario that gold will break down lower from here.
This hasn't changed my long term perspective on gold which is bullish but for those looking to play the smaller time frame or hedge their long positions, these short term trends are still important to watch.
This hasn't changed my long term perspective on gold which is bullish but for those looking to play the smaller time frame or hedge their long positions, these short term trends are still important to watch.
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Price broke down overnight for a drop of 1% and has aggressive pulled back up on high volume. From this very bullish intraday price action we may be seeing a short term and potentially a long term bottom being put in place.