Today, Gold and Silver confirmed that they have topped out for the time being. The Equity markets are another story, and I’m not quite sure that we have seen a bottom put in place for those markets.
Gold futures closed down $100.00 an ounce at $1,761.00 today. Prices closed near the session low today in a mammoth sell off that featured profit taking, weak long liquidation and some panic selling that did do some psychological damage to the market, but no serious chart damage, yet.
There was strong follow through selling pressure Wednesday, after sharp losses scored on Tuesday, and a big and bearish "key reversal" down was confirmed, which is one early technical clue that a market top is in place. While it should be noted that twice this month bearish key reversals have occurred on the daily bar chart and prices went on to score new highs, the size of this key reversal is massive and makes it more powerful than the others.
Yesterday’s negative market action set the tone for the gold market today. The Japanese candlestick negative (bearish) engulfing line will be confirmed with a lower close today. Long Term, intermediate term traders should stay disciplined and hold onto long positions and protect profits with money management stops. Short term traders should now be on the sidelines and waiting for a new long entry point.
Gold Trend Analysis.....
Monthly Trade Triangles for Long Term Trends = Positive
Weekly Trade Triangles for Intermediate Term Trends = Positive
Daily Trade Triangles for Short Term Trends = Negative
Combined Strength of Trend Score = + 75
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