Gold collapse imminent? 7hr chart
Updated
Price action on Gold since August as shown on the above 7hr chart.
A Euphoric rally in the last 3 months has Gold bugs jubilant in celebration with a record 48% win from September 2011 (Ignore the 480% return of the S&P 500 in the same period).
There are now messages aplenty calling for 5k and beyond. Who knows. One thing I do know, a common theme throughout the messages, people are euphoric. Market tops print with euphoria.
Now this idea is not about who is wrong or who is right, congratulations if you've made a profit. The point of the post is to make sure profits are realised. A profit on paper is not a win and the bubble may now be about to pop. 90% of folks long on gold will not collect the recent gains.
Why might the party be about to end?
A few reasons..
1) Price action support is broken. This is also true for RSI.
2) Throughout history RSI above 80 on the 3 week chart (below) has been a warning shot for extreme overbought conditions. Look left. Corrections between 20% and 50% are recorded.
3) Price action is at historical macro resistance (see 2 month chart below).
Is it possible this time is different? Sure.
Is it probable? No.
Ww
3 week
2 month
A Euphoric rally in the last 3 months has Gold bugs jubilant in celebration with a record 48% win from September 2011 (Ignore the 480% return of the S&P 500 in the same period).
There are now messages aplenty calling for 5k and beyond. Who knows. One thing I do know, a common theme throughout the messages, people are euphoric. Market tops print with euphoria.
Now this idea is not about who is wrong or who is right, congratulations if you've made a profit. The point of the post is to make sure profits are realised. A profit on paper is not a win and the bubble may now be about to pop. 90% of folks long on gold will not collect the recent gains.
Why might the party be about to end?
A few reasons..
1) Price action support is broken. This is also true for RSI.
2) Throughout history RSI above 80 on the 3 week chart (below) has been a warning shot for extreme overbought conditions. Look left. Corrections between 20% and 50% are recorded.
3) Price action is at historical macro resistance (see 2 month chart below).
Is it possible this time is different? Sure.
Is it probable? No.
Ww
3 week
2 month
Trade active
Market resistance confirmed.
Take profits.
Trade active
4 Day Gravestone DOJI print with confirmation.
Is Gold about to crash 25% to 2k for a support test?
BTC
bc1q2eckdzh0q8vsd7swcc8et6ze7s99khhxyl7zwy
Weblink: patreon.com/withoutworries
Allow 3-6 months on ideas. Not investment advice. DYOR
bc1q2eckdzh0q8vsd7swcc8et6ze7s99khhxyl7zwy
Weblink: patreon.com/withoutworries
Allow 3-6 months on ideas. Not investment advice. DYOR
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.