Gold closed down almost 20 points today as the FOMC announced it would not raise the Fed interest rate in May but left a rate hike on the table for June. But regardless of that news, let's look at the technical aspects of the precious metal's chart.
First, the tag of the lower Bollinger Band was what I've been discussing during this bear selloff began in Mid April. This is what I call the 'Coast to Coast' trade, moving from one end of the Bollinger Band to the other.
Second, the haDelta indicator printed a magenta dot on Tuesday when the Delta crossed down under the smoother Delta average. This was a bearish signal and combined with the proximity of the lower Bollinger Band, gave statistical weight to holding onto a short position.
Third, the Heikin-Ashi candles are in a long red downward trajectory. Although last week ended with 2 weak HA candles, the candles have become stronger the last 2 days which indicates a possible resumption of the sell-off.
Now that the lower Bollinger Band has been hit, what is next? We need to watch price action over the next couple of days. If Gold is in an oversold state, then expect a correction to take place. This may result in some sideways action or in a sharp buying spurt. Or, there may be continued sell-off over the next couple of days. Watch the Heikin Ashi candles. If the trend is about to reverse, you will see Dojis and color changes. Also watch for a cross back over the 0 line of both the haDelta Indicator and Elliot Wave Oscillators.
I will be out on vacation for the next couple of weeks so I wish all of you good luck trading and protect your profits!
If you like this post, please click the Lick button, tell your friends, and re-Tweet!
Disclaimer: This post is for educational purposes only. Trading is at your own risk.
First, the tag of the lower Bollinger Band was what I've been discussing during this bear selloff began in Mid April. This is what I call the 'Coast to Coast' trade, moving from one end of the Bollinger Band to the other.
Second, the haDelta indicator printed a magenta dot on Tuesday when the Delta crossed down under the smoother Delta average. This was a bearish signal and combined with the proximity of the lower Bollinger Band, gave statistical weight to holding onto a short position.
Third, the Heikin-Ashi candles are in a long red downward trajectory. Although last week ended with 2 weak HA candles, the candles have become stronger the last 2 days which indicates a possible resumption of the sell-off.
Now that the lower Bollinger Band has been hit, what is next? We need to watch price action over the next couple of days. If Gold is in an oversold state, then expect a correction to take place. This may result in some sideways action or in a sharp buying spurt. Or, there may be continued sell-off over the next couple of days. Watch the Heikin Ashi candles. If the trend is about to reverse, you will see Dojis and color changes. Also watch for a cross back over the 0 line of both the haDelta Indicator and Elliot Wave Oscillators.
I will be out on vacation for the next couple of weeks so I wish all of you good luck trading and protect your profits!
If you like this post, please click the Lick button, tell your friends, and re-Tweet!
Disclaimer: This post is for educational purposes only. Trading is at your own risk.
