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XAU/USD Weekly Bear Divergence

Hello,

I have prepared for all of you this chart claiming that we are going to see a deep correction for Gold. I have identified a weekly bearish divergence and decided to see if I could find a similar fractal in golds history to use as a projection for where this current correction will end. I found a similar fractal in 2008 and measured it with a Fibonacci retracement tool and thus applied it to our current timeframe.

Weekly we are in a bearish divergence which is in confluence with the current wave count and this wave count is also similar to the 2008 weekly bearish divergence and wave count. I have also checked the COT data and can tell you that for the past few weeks that large speculators have been closing longs and adding shorts.

I have included a snapshot of this current bearish divergence and a snapshot of the 2008 bearish divergence that you may see the similarity between the two. Additionally, you can click on the link below for the COT data report.

Current Weekly Bearish Divergence