Please note that the major strategic direction is BULLISH! As I have expressed my view a couple of times here and on Twitter, in the long run the better risk reward will be LONG gold. Probably Gold will be an outperformer for years! But to get the best performance, it is important to find better entry levels. This requires patience! What is the situation now? Our friend, Heikin-Ashi suggests that the bullish momentum started to decrease. We will see some consolidation / pull back in coming days or weeks. It is not the best time to buy now. It is time to sit and wait.
The signals:
Weekly - haDelta crosses below SMA3. Early signal for a possible top, but of course the week has just started, so we have to watch this developing
Daily - last Heikin-Ashi candle was a doji with very long upper and lower wicks! This shows big indecision short term. haDelta/SMA3 is ticking lower towards zero, and has built small negative divergence -> loss of momentum
4H - This you might have seen already in my morning Twitter post. Double top? Flat Tenkan and Kijun (lack of trend momentum), Heikin-Ashi reversal to short term bearish bias (previous warning from haDelta, followed by red candle)
EWO negative divergence
Given this picture, short term a pull back to 1340 can easily happen. We can't exclude a major pull back to 1290-1300 support either, but please remember, there we have to look for BUY signals again!
For now those who hold strategic long position in gold, it may be wise to sell short dated covered Call options, to get some premium.
The signals:
Weekly - haDelta crosses below SMA3. Early signal for a possible top, but of course the week has just started, so we have to watch this developing
Daily - last Heikin-Ashi candle was a doji with very long upper and lower wicks! This shows big indecision short term. haDelta/SMA3 is ticking lower towards zero, and has built small negative divergence -> loss of momentum
4H - This you might have seen already in my morning Twitter post. Double top? Flat Tenkan and Kijun (lack of trend momentum), Heikin-Ashi reversal to short term bearish bias (previous warning from haDelta, followed by red candle)
EWO negative divergence
Given this picture, short term a pull back to 1340 can easily happen. We can't exclude a major pull back to 1290-1300 support either, but please remember, there we have to look for BUY signals again!
For now those who hold strategic long position in gold, it may be wise to sell short dated covered Call options, to get some premium.
