This is normal. But don't wait for a big rally to 1300+ ...
We have maximum 7 days from now for a move down into the daily cycle low.
Today the dip buyers were buying gold as a backtest of the breakout.
As soon as bulls will realize that it's not a backtest but we are heading down to the 50 and to the , they will be trying to exit immediately. That will push price down to the or to the 50EMA into the DCL.
We will have a pop from the 50 as a start of a new daily cycle but that last daily cycle will roll over in 4-5 days and we break below the 50 and enter into the panic selling stage. That will take price down into the 5th daily cycle low at the 200 .
Time is too short for this decline. Today and tomorrow I would like to see a really serious and scary decline below the 20 EMA with the blood of the late bulls on the chart.
They must realize that got caught on the wrong direction.
To suck in retail traders...
THat's why the times of the pattern traders are over. The patterns alone are useless.
The direction is short. It was short. It is short. It eill be short.
On the hourly chart I was waiting for a strong decline to the daily50 EMA till today, but the decline was not so szrong so Im waiting for a pop tomorrow on the NFP After that a decline could start. So thats why the hourly is neutral. Sofor those who trade withhigh leverage on the hourly I suggest to be careful. I dont know whsts hsppening in the next hours. But if you enter on a daily chart and no problem for you if we pop up to 1300 on s bad NFP report then the direction is short. You just should not get stopped out at 1303. Those who are trading on the hourly will be stopped out at 1280. Howshould they survive a pop to 1300??
They are overleveraged... If they are just watching the daily chart even if they are short they could be stopped out in stronger pullback. If you read the text below the chart I always write that the medium term (1-2 months) direction is unchanged.
On my account I have a core position which right now short in gold. But I'm also daytrading with added positions and I can save my account from the big pullbacks. Like the one is possibly coming today. Don't think that this gold decline will be easy... The dip buyers , and funds will be positioning in long for 2-3 years. I will ask you if price pops up to 1300 today for a few minutes what your intentions will be. I will be adding shorts at that time what I closed yesterday.
If we just rolling over without the pullback I will sit back and happily see as we are decaying with my core positions.
But I'm always staying 100% protected.