AB-CD pattern on the weekly, details on chart. Although the 1172 level was breached the past week, the weekly candle managed to close above it, which is a good sign for bulls. This week's candle was also a doji, citing indecision and lower selling volume.
Historically, there has been support/resistance around this level as well, shown in the blue boxes and the Stoch RSI is also turning up. Last, weekly RSI has bounced off 30 several times, which is where we are at now.
However, the AB-CD pattern states that B-C retracement can go to .786, aka $1116. I don't think this is likely though. Maybe that'll happen at Fed hike. Further, if a weekly candle closes below $1116, then this idea is not valid and we should be going back to square one (A) at $1045, where we were almost exactly a year ago in dec of 2015.
Going forward, we should watch $1212, which is the 0.5 level of AB. If we break it, should head to 1251 and up. Fib extension at point D far away.
I am still holding a big position in a PM that I like. Despite the drop from 1300s to where we are now, GDX has held steadily. For example, when gold dropped $15 from 1180 to 1165 ish, my miner only dropped 2-3%, while a rise in gold of $5-10 led to a pop of over 5%!
Good luck and trade well :)
*** not investment advice, just a perspective if gold bottomed here ***
Historically, there has been support/resistance around this level as well, shown in the blue boxes and the Stoch RSI is also turning up. Last, weekly RSI has bounced off 30 several times, which is where we are at now.
However, the AB-CD pattern states that B-C retracement can go to .786, aka $1116. I don't think this is likely though. Maybe that'll happen at Fed hike. Further, if a weekly candle closes below $1116, then this idea is not valid and we should be going back to square one (A) at $1045, where we were almost exactly a year ago in dec of 2015.
Going forward, we should watch $1212, which is the 0.5 level of AB. If we break it, should head to 1251 and up. Fib extension at point D far away.
I am still holding a big position in a PM that I like. Despite the drop from 1300s to where we are now, GDX has held steadily. For example, when gold dropped $15 from 1180 to 1165 ish, my miner only dropped 2-3%, while a rise in gold of $5-10 led to a pop of over 5%!
Good luck and trade well :)
*** not investment advice, just a perspective if gold bottomed here ***
Weekly candle going to close below 1172, the bearish target for next week could be .236 extension of 1232 to 1161, which is 1144.