The same vulnerability that existed last week (see idea linked below) is only a reversal day away and we're still in the downtrend channel. Rather than being somewhat inside the channel like we were last week, we are now just inside the upper edge which makes for a great risk/reward short entry. Copper is similarly at a trendline (actually a confluence) and has a similar great risk/reward setup. The caveat is copper had a +8% day on Friday and gold a +2.8%. Tonight (Sunday night) I will be assessing market conditions looking to possibly go short gold. Below is the copper setup. It lines up better on the daily chart but I am currently using the daily chart to publish this gold idea.
Note that gold is also retesting the bottom of the major double top on the weekly.
Note that gold is also retesting the bottom of the major double top on the weekly.
Trade closed: stop reached
