After today’s 1% drop it’s not a question anymore : we have started the correction. The only question how far is gold dropping. These kind of drops into the DCL are usually lasting for 4-7 days. So I don’t expect a bottom today. The bottom could be printed at the end of this week or beginning of next week. Fibonacci levels: I like to use the Fib retracement for predicting how far price can go before printing the bottom. After today’s drop we are just sitting on the FIB 23,6%. So this is not going to be the bottom. The next level is the FIB 38,2% retracement at 1317. If tomorrow or on Wednesday we tag that level the 10 SMA will be there too, so that’s the first level I can agree the bottom could be. In the past the first DCL usually broke below the 10 SMA though. So the first level where we can break below the 10 SMA is the 50% FIB retracement at 1307.392.
This is quite close to the neckline of the double bottom too. (1303)
If things are getting really ugly we might tag the FIBO 61,9 % retracement at 1297$. At that level we have a hell of a lot of moving average: 50 EMA, 100 SMA, 20 SMA. This is my last level where I think this retracement can end. So if nothing changes I will start to reload the trucks between 1307 and 1297. In the meantime I will also be watching the technical indicators to catch the bottom.
Comment
⋅
1320 will be a small stop before 1317
Comment
⋅
1320
Comment
⋅
... and the small stop:
Comment
⋅
There is a bit more to rally to the trendline.
Comment
⋅
Trendline tagged. Let’s break 1320.
Comment
⋅
I was certainly not anticipating this... We have a daily swing.
Comment
⋅
The volume is low I just wonder isn’t this bounce a trap from the banks to the early bulls
Comment
⋅
The daily close will be important. If we erase all the gains of today by the close and close in the red it was a trap and we are aiming 1300.
Comment
⋅
Oil is not looking good. The whole CRB will take a dive if oil goes below 50.75$. It can drag gold down with it. Crazy times.