Gold lower high swing/larger head and shoulders pattern?
First of all, I must preface as I did with my Silver idea...this is a trade. Long term I am very BULLISH on precious metals given the confidence crisis we are heading to, and the fact world central banks will be cutting to 0 and providing stimulus. Human history is cycles of hard money and soft money and it seems we are reaching the zenith of the keynesian/soft money cycle.
Gold reached my first target resistance/flip zone of 1560. From here we got a sell off.
We did close below a previous higher low at 1520 which according to market theory, we have now nullified the uptrend. You can see the retest was also sold off coming into the Friday close. 1522 will potentially be our first lower high in a downtrend once we create lower lows (closing below 1504).
I want to draw your attention to the 1485 zone. 1485 would be a target for a short position, but if we do bounce from here, and then sellers step back in to create another lower high swing thus breaking below 1485...we would create a larger head and shoulders pattern forming a right shoulder.
Again, even on the weekly chart, I can see both Gold and Silver pulling back to make a higher low swing on the weekly. Nothing moves up or down forever. I believe this will be a great buying chance, or a time to add to positions.
The macro environment and social/economic/political environment and the upcoming issues favour Gold to the upside. Be sure to read my posts on my why Gold will break 1600 and eventually hit new highs and also Gold pertaining to classical economics and hard money both of which are linked.
Gold reached my first target resistance/flip zone of 1560. From here we got a sell off.
We did close below a previous higher low at 1520 which according to market theory, we have now nullified the uptrend. You can see the retest was also sold off coming into the Friday close. 1522 will potentially be our first lower high in a downtrend once we create lower lows (closing below 1504).
I want to draw your attention to the 1485 zone. 1485 would be a target for a short position, but if we do bounce from here, and then sellers step back in to create another lower high swing thus breaking below 1485...we would create a larger head and shoulders pattern forming a right shoulder.
Again, even on the weekly chart, I can see both Gold and Silver pulling back to make a higher low swing on the weekly. Nothing moves up or down forever. I believe this will be a great buying chance, or a time to add to positions.
The macro environment and social/economic/political environment and the upcoming issues favour Gold to the upside. Be sure to read my posts on my why Gold will break 1600 and eventually hit new highs and also Gold pertaining to classical economics and hard money both of which are linked.
