GOLD FOMO is over!!!
Updated
Gold, after reaching an all-time high today amid significant overbought conditions, experienced an intense surge that triggered the stop losses of many short sellers. However, following this surge above the all-time high level, it underwent a sharp and substantial reversal on substantial volume, signaling a potential end to the bullish trend in gold. This was sign of pure capitulation on gold.
Additionally, simultaneous strong bearish divergences were observed, with the price climbing while both RSI and MACD exhibited relative weaknesses and indications of weakness within the overbought territory.
In conclusion, if gold continues to decline tomorrow and confirms the termination of the bull run, be prepared for a substantial drop in the coming weeks and months. The first major support is expected in the area of support, as well as around the 200-day and 50-day moving average zones.
Additionally, simultaneous strong bearish divergences were observed, with the price climbing while both RSI and MACD exhibited relative weaknesses and indications of weakness within the overbought territory.
In conclusion, if gold continues to decline tomorrow and confirms the termination of the bull run, be prepared for a substantial drop in the coming weeks and months. The first major support is expected in the area of support, as well as around the 200-day and 50-day moving average zones.
Note
Rising wedge!!!
Bearish thing is Gold just can not jump off this trendline, very bearish!
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Gold is dropping as expected, but it needs to find support at the support area and at the significant 200-day MA (Moving Average) known as the 'big red aka 200 days MA.'
Two days ago, just as I said, it looked weak, and sure enough, it broke out of the rising wedge. The 1950 area MUST hold; otherwise, gold will be tossed for a long period of time
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fter a strong rejection from the all-time high (ATH) and a subsequent fall from the rising wedge, Gold did find support at the levels I had indicated, and it bounced back nicely.
Now, it has rebounded back into the pattern. To remain bullish, it needs to stay within the pattern and continue to rise further towards the ATH and beyond.
Otherwise, this could be merely a textbook retracement to the area of the breakdown, and it may continue to decline sharply. In that case, I would watch it as a potential Head and Shoulders reversal pattern with a target around 1800.
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OR FOMO WILL START TODAY???
After a strong rejection and breakdown from a rising wedge, Gold did find support at the 20 and 50 days MA. The neckline wasn't broken, indicating strong power in preparation for gold.
In the last 6 trading days, Gold has been forming a high base formation, and today it started to break out of it, which is bullish.
Unfortunately for all of us traders, we can't buy at this breakout of the high base because, and before the PCE data today, as PCE could move the dollar and gold and stocks in any direction and could move it epically.
If we close today above 2045, I assess that a new ATH could be reached pretty soon.
However, if PCE data is strong, and the dollar starts to climb with 10-year yields, there is a huge possibility Gold will collapse.
Personally, I'll wait for the market's reaction to the data, as remember, it is not the news that counts; it is the market reaction to the news.
Consistency is the key of success....
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