Gold reached yesterday during New York session on a new record $ 1,440 an ounce, but buyers have come to give ground before the close. And finally, gold closed at equilibrium on the day, which was materialized by the appearance of a doji, which more and on top of an uptrend. Bad sign, but this is just the beginning.
multiple adverse signals:
It was only a first warning to all Gold Bulls who swarm after 10 years of uninterrupted growth. This warning was in actually accompanied by a reversal of my oscillators, namely the RSI and William's Percent Range. The RSI is out of the overbought zone which is commonly considered a strong bearish signal.
But if I write a short note about the precious metal tonight is because the market has confirmed these early bearish signals. On the chart has formed a beautiful evening star, evening star doji for purists, as I noted this morning on Twitter. This figure, when it appears at a marked upward trend heralds a movement correction. Moreover, the Evening Star has the merit of work very often, especially since it appears relatively rarely.
(NB: Evening Star = significant bullish candle followed by a doji, which itself followed by a bearish candle similar to the first).
prudent Note:
So obviously I'm not an expert on gold. I've often been fooled by the Gold Bulls in the past. To me the signal is very clear: to place down. Only caveat: in the last hour of trading, the bulls managed to keep prices above the trendline that supports ongoing since late January, and has accompanied a rise of 10%. A monitor then.
How to react?
Two options are offered to us: recovery from this bullish trendline (knowing that borders on overheating) or release the bears!
I'm more willing to take short positions rather than vice versa. So tomorrow I will be monitoring all attempts to pass under this trendline (perhaps as early as tonight). If it works, I will ship with the Bears for the yellow metal to plunge towards the symbolic 1,400 minimum (I know that $ 1,400 is next door), and probably moving average which is 20 sessions currently about $ 1,387 an ounce.
If we do, I can write a new note on gold, if not just a few messages on twitter. Meanwhile good night and remember that in general, the future belongs to those who rise early.
Who Let The bears out?
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