GOLD is getting very interesting. A daily cycle usually lasts for 20-28 days. Tomorrow is day 15. Tomorrow we will reach the 300 EMA at 1152. Gold should top there and start to move into its daily cycle low in the following 5-10 days. The 2 options are: 1. if the move down to the daily cycle low is slow with small candles we just test back the intermediate trend...
While stock market is falling GOLD will break the upper leg of the channel during the overbought conditions. Lot of traders are waiting for the test of the lower leg of this channel. It's a possibility but the risk is high that bears will be punished for earning so much money in this bear market. We are very late in this bear market now.
Target: daily chart 300 EMA : 1150-1153
Gold is breaking out of the flag. It will start to test the 1110 level. I'm waiting for a breakout above 1110 on Friday.
The Commitment of Traders report (COT) was published at the close of last Friday's trade it always shows the Tuesday data. The formula for Blees rating uses the Commercial Traders net contract holdings at the date of the current COT report. We inserted the Blees rating into the daily chart. It supports the breakout from the triangle pattern , and the testback of...