There are microbounces where you need a microscope to notice the bounce. After a Macron victory we can have a macrobounce...
Friday we printed an inverted hammer on the daily chart.
After the previous few days' downtrend, the formation of an Inverted Hammer is bullish because prices hesitated their move downward by increasing significantly during the day. Nevertheless, sellers came back into gold and pushed prices back near the open, but the fact that prices were able to increase significantly shows that bulls are testing the power of the bears. On the next day - today - after the Inverted Hammer pattern we opened with a gap. The gap was immediately closed in the following hour so the chances are high we printed an exhaustion gap....
Cycle wise we are on day 40 in the 3rd daily cycle . With the exhaustion gap printed on day 40 the chances are extremely high that gold printed its daily cycle low after Macron's victory.
Notice how the miners were rallying on Friday as smartmoney were positioning in mining shares.
This a typical buy the news event. Macron's victory should had been a bad news for gold. But last week the "En Marché" victory was baked in the cake. Market washed out the weak hands and the overleveraged players in the 10$ drop at the open and the initial sell off at was bought immediately.
Notice how we are bouncing from the 100 MA. This moving average is one of the most important on gold's chart.
Also RSI is reversing from the same level it reversed at the last DCL.
Get ready our bounce is coming!
Friday we printed an inverted hammer on the daily chart.
After the previous few days' downtrend, the formation of an Inverted Hammer is bullish because prices hesitated their move downward by increasing significantly during the day. Nevertheless, sellers came back into gold and pushed prices back near the open, but the fact that prices were able to increase significantly shows that bulls are testing the power of the bears. On the next day - today - after the Inverted Hammer pattern we opened with a gap. The gap was immediately closed in the following hour so the chances are high we printed an exhaustion gap....
Cycle wise we are on day 40 in the 3rd daily cycle . With the exhaustion gap printed on day 40 the chances are extremely high that gold printed its daily cycle low after Macron's victory.
Notice how the miners were rallying on Friday as smartmoney were positioning in mining shares.
This a typical buy the news event. Macron's victory should had been a bad news for gold. But last week the "En Marché" victory was baked in the cake. Market washed out the weak hands and the overleveraged players in the 10$ drop at the open and the initial sell off at was bought immediately.
Notice how we are bouncing from the 100 MA. This moving average is one of the most important on gold's chart.
Also RSI is reversing from the same level it reversed at the last DCL.
Get ready our bounce is coming!
Comment:
100 MA and gold.
Notice the importance of this moving average.
Below that : bearish.
Above that : bullish.
Notice the importance of this moving average.
Below that : bearish.
Above that : bullish.
Trade closed manually
Bullish.