Though we still cannot call the bottom yet, we are clearly consolidating and trying to end this decline.
If we don't break lower during this week (dec-27-dec.30) we might have had the bottom at day 49.
A 49 day long cycle is long enough to have a good bounce especially if we are at the intermediate low.
The first sign of the bottom is usually the break of the daily down trendline. Because of the election night pop it's pretty hard to tell which trendline is the valid trendline. So I was monitoring 3 trendlines. This night we've clearly broken the 3rd (green) trendline and attacking the 10 EMA. (All trendline is broken)
The next step is a close above the 10 EMA and print a daily swing. The daily swing will be valid with any close above 1145$.
Indicators:
MACD has crossed over again and coming back from extreme levels.
RSI finally left oversold territory
Volume decreased in the decline : sellers dried up
Even if we go below 1000 $ - what I still don't think- first we will have a good rally for 5-6 weeks in 2017 Q1. So all the traders who are waiting for sub 1000$ gold prices will have to face with a strong rally in the following weeks. The strength of the rally will determine we are still in a bull market or we are back to the bear market.
Wherever we are it's going to be a tough fight with powerful testbacks . So my suggestion is to have a starter position and be very careful with the down spikes.If the position is too big they will shake you out.
If we don't break lower during this week (dec-27-dec.30) we might have had the bottom at day 49.
A 49 day long cycle is long enough to have a good bounce especially if we are at the intermediate low.
The first sign of the bottom is usually the break of the daily down trendline. Because of the election night pop it's pretty hard to tell which trendline is the valid trendline. So I was monitoring 3 trendlines. This night we've clearly broken the 3rd (green) trendline and attacking the 10 EMA. (All trendline is broken)
The next step is a close above the 10 EMA and print a daily swing. The daily swing will be valid with any close above 1145$.
Indicators:
MACD has crossed over again and coming back from extreme levels.
RSI finally left oversold territory
Volume decreased in the decline : sellers dried up
Even if we go below 1000 $ - what I still don't think- first we will have a good rally for 5-6 weeks in 2017 Q1. So all the traders who are waiting for sub 1000$ gold prices will have to face with a strong rally in the following weeks. The strength of the rally will determine we are still in a bull market or we are back to the bear market.
Wherever we are it's going to be a tough fight with powerful testbacks . So my suggestion is to have a starter position and be very careful with the down spikes.If the position is too big they will shake you out.
Comment:
Deutsche Bank was running the shorts' stops this morning .The question is : was it just a short run and we are heading lower again, or we are just flagging and going to break higher.
I think the US market will give us the answer.
Dont forget we are in the low volume holiday trading... So banks might just want to earn a "little" money in volatility by running the stops.
I think the US market will give us the answer.
Dont forget we are in the low volume holiday trading... So banks might just want to earn a "little" money in volatility by running the stops.
Comment:
We couldn't close above the 10 EMA, but we are clearly holding above the green trendline at the close.
The best point for the entry is a clear close above the 10 EMA. The problem with that entry that price might be above 1160-70 by that time and you miss 40-50$ of that move..
The best point for the entry is a clear close above the 10 EMA. The problem with that entry that price might be above 1160-70 by that time and you miss 40-50$ of that move..
Comment:
USA is buying and gold is resisting the strong dollar today.
Comment:
Gold closed above the 10 EMA.
90% we bottomed on the 15th December at 1122$.
90% we bottomed on the 15th December at 1122$.
Let's see if it holds by the end of the day.