After yesterday's night drop the hourly chart's RSI became enough overbought to call for a pullback.
Before breaking out of the multi month consolidation the chart printed a coil. The breakout of the coil is usually tricky: after a convincing breakout price reverses and heading much lower...
After the breakout - even Kim launched a missile over Japan - we just printed a dragonfly doji ( falling star on gold futures chart). A multi month consolidation's breakout should not end up by a falling star on the second day...
And today we are having a hanging man. This kind of candlestick combination usually ends up by a drop.
A coil , the falling star and a possible hanging man enough for me to sell the pullback again.
We might end up the day by a tri-star formation.
What will fuel the drop ? The dollar and stock rally.
Before breaking out of the multi month consolidation the chart printed a coil. The breakout of the coil is usually tricky: after a convincing breakout price reverses and heading much lower...
After the breakout - even Kim launched a missile over Japan - we just printed a dragonfly doji ( falling star on gold futures chart). A multi month consolidation's breakout should not end up by a falling star on the second day...
And today we are having a hanging man. This kind of candlestick combination usually ends up by a drop.
A coil , the falling star and a possible hanging man enough for me to sell the pullback again.
We might end up the day by a tri-star formation.
What will fuel the drop ? The dollar and stock rally.
Comment:
We are printing a double top with a false breakout.
It's a perfect place to trap the late longs.
It's a perfect place to trap the late longs.
Comment:
COT is out :
367.000 commercial short with the Blees rating at 35.
At the last intermediate top we had 324.652 (2017.06.06) commercial short with the Blees rating at 37.
367.000 commercial short with the Blees rating at 35.
At the last intermediate top we had 324.652 (2017.06.06) commercial short with the Blees rating at 37.
Comment:
Price is at the same level where it was on Monday evening after Kim's missile.
SO nothing happened this week. Only commercials increased their shorts and the Blees most probably below 30 by today.
Monday labor day in the USA. This is the perfect spot for a gap down.
SO nothing happened this week. Only commercials increased their shorts and the Blees most probably below 30 by today.
Monday labor day in the USA. This is the perfect spot for a gap down.
Comment:
The currencies are clearly reversing...
Stocks are before the breakout. We are just waiting Trump's tax reform to be accepted.
Stocks are before the breakout. We are just waiting Trump's tax reform to be accepted.
Comment:
The gap will be closed.
My bets are on this will turn out to be an exhaustion gap.
My bets are on this will turn out to be an exhaustion gap.
Comment:
Chances are good we topped yesterday and the gap was an exhaustion gap...
Sub 1300 is coming soon.
Sub 1300 is coming soon.
Comment:
There is always a DCL.
Don't count on monday gap close. That will be there for a while.
Don't count on monday gap close. That will be there for a while.
This is not how a valid breakout should act.
Watch out for the dollar and stocks. They are starting a terrible rally.
Noone will be interested in buying gold in this overbought condtitions when we are entering the best part of stock rally in the year + best part of the 8 year bull market.
Bulls will be slaughtered.