GOLD - Could gold be capitulating? Not sure/thoughts welcome!
- Firstly, id like to apologise for my Analysis over the past few weeks especially on Gold/Silver. NOTHING seemed to go right, I based my ideas off solid technical analysis but the Fundamental side of things seems to have been in control majority of the time.
- However, despite this my view on gold is still long as market capitulation may be occurring, I have researched this concept and found a few common signs of capitulation occuring/occured including:
1. "Capitulations commonly involve unusually high trading volumes and price declines, typically over one or two trading days (although they can last longer)"
- On the 17/07/2018 (yesterday) we saw a very strong bearish decline with extremely high bearish volume as shown on my chart. This decline has lasted over a week.
2. "Capitulations are most frequently attributed to investors emotionally "giving up," rather than to external forces like changes in the fundamental outlook of a company. This negative investor sentiment may be the cause (or effect) of reaction and opinion communicated by the media, analysts, traders, or other investors"
3. "There is no guaranteed way to spot capitulation before it happens or while it is happening. However, because capitulations generally reflect the final bottoming-out of a security or market, prices typically increase after a capitulation. Thus, capitulations can also signal the beginning of a turnaround"
- The sharp decline accompanied by high volume has found support around the 1200- 1222 Pyschological support area.
- Would need to see Bullish price action/Price increase from here to confirm this theory.
Especially appreciate any thoughts/comments on this one as I am not familiar with this concept however I believe alot of signs are pointing towards it possibly occurring, but i could be wrong.
Thanks for reading,
James
- However, despite this my view on gold is still long as market capitulation may be occurring, I have researched this concept and found a few common signs of capitulation occuring/occured including:
1. "Capitulations commonly involve unusually high trading volumes and price declines, typically over one or two trading days (although they can last longer)"
- On the 17/07/2018 (yesterday) we saw a very strong bearish decline with extremely high bearish volume as shown on my chart. This decline has lasted over a week.
2. "Capitulations are most frequently attributed to investors emotionally "giving up," rather than to external forces like changes in the fundamental outlook of a company. This negative investor sentiment may be the cause (or effect) of reaction and opinion communicated by the media, analysts, traders, or other investors"
3. "There is no guaranteed way to spot capitulation before it happens or while it is happening. However, because capitulations generally reflect the final bottoming-out of a security or market, prices typically increase after a capitulation. Thus, capitulations can also signal the beginning of a turnaround"
- The sharp decline accompanied by high volume has found support around the 1200- 1222 Pyschological support area.
- Would need to see Bullish price action/Price increase from here to confirm this theory.
Especially appreciate any thoughts/comments on this one as I am not familiar with this concept however I believe alot of signs are pointing towards it possibly occurring, but i could be wrong.
Thanks for reading,
James