Gold market update

Gold market update

On the left side you see 3d #gold chart, a lot of volume arrived on up-bars in the first half of August. Too much volume on up-bars – is a sign of Hidden Weakness as professional money get an opportunity to close big blocks of longs and spread gold contracts over the buying rush of FOMO public (retail traders). Ths spike in Google trends data confirms the FOMO sentiments. So, if the get the first sign of major distribution range, then what the bearish responses?

  1. price can not bounce up from line B and drop to line C.
  2. we have a red zone of weakness, it has built from the big Supply Bar.
  3. study the profile of up-wave in the first half of October. It has a shape of “P”. Bearish indication.
  4. Price declined below the POC level of up-wave in the first half of October. Bearish indication.

Takin into account considered facts, I believe if gold will break down line C, it will reach D. Breakin out above POC of October up-wave will invalidate this view.

 

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