The End of the Gold Rally
Gold sold off sharply today, dropping 15.5 points and closing under all 3 moving averages on the chart, the 6 day, the 8 day and the 21 day moving averages. Gold now seems determined to head south. The first target should now be the lower red bollinger band.
Chart update: now that the bull run is over, I've removed the intermediate and short term waves from the chart. In it's place, I've added a fib retracement that spans the date range from election night, 11/8/2016 through the present. It's very clear that Gold was not able to break through the .618 retracement level and is now trading at the .50 level.
Gold is now knocking on the door of the Ichimoku cloud. With 2 strong red Heikin-Ashi candles, odds are that price will now move in to the cloud. The conservative trader will want to wait for price to emerge on the downside of the cloud before going short. More aggressive traders will want to go short now, placing stops at the 6 day moving average.
The Volume Profile chart shows that the long term and short term POCs have move down and it is at this level the price closed today. This is more confirmation that the bull move is over.
Chart update: now that the bull run is over, I've removed the intermediate and short term waves from the chart. In it's place, I've added a fib retracement that spans the date range from election night, 11/8/2016 through the present. It's very clear that Gold was not able to break through the .618 retracement level and is now trading at the .50 level.
Gold is now knocking on the door of the Ichimoku cloud. With 2 strong red Heikin-Ashi candles, odds are that price will now move in to the cloud. The conservative trader will want to wait for price to emerge on the downside of the cloud before going short. More aggressive traders will want to go short now, placing stops at the 6 day moving average.
The Volume Profile chart shows that the long term and short term POCs have move down and it is at this level the price closed today. This is more confirmation that the bull move is over.
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