Most assets rising in price today and the EUR/USD is higher, the price of gold is up. Positive liquidity which is oxygen for all assets markets appear yet again.
Technically: The price of gold managed to break above the sharp short term downtrend line. However, I opine that the last three candles on the daily chart are technically very bearish and that will have more implications going forward. The gold bears have spoken and showed forceful resistance.
ZGM7 – CBOT June Gold Intraday (120 minutes) chart below, annotated with Fibonacci lines and Elliott wave count
8 comments:
It does look bearish... But what about Jan 5,2007, didn't that look bearish too? (I'm not too comfortable with gold right now also, but hope last drop really flush out the spectators)
Frank
Good eyes, I see some similarities to January 5 2007 (Lower low after lower high)
But back then gold was lower and under its 200 MA. I didn’t posted on this exact day but on Jan 7 was looking for a C bottom after a clear 5 waves up pattern (wave i)
as this blog archive show.
http://globalgold.blogspot.com/2007/01/gold-price-chart-commentary.html
Time will tell...
As gold seems to break out of 4 day (today the fourth) consolidating triangle, any thoughts or update? On COT chart, it seems commercial has been on the short side of trade, do you think gold has reversed it's trend?
Frank
Not much change, closed higher impulsive intraday rally but lower low and lower high vs. yesterday. Some support exists at current double bottom which coincide with 7.5 month uptrend support. However I still in the opinion of a failed V which we just experienced and bearish omen still exist. Mixed…
Thursday bottom hold so we give it a go and see how high it can climb.
All hell break loss? I guess inflation taming around the world is putting a nail in the coffin for gold? If $655 don't hold, then...? Bear market?
Frank
Today's action increases the possibility for USD index to go higher. Back to the drawing board...
Just browsing the net, very interesting.
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