Gold made two a High-Wave doji-type candles that require confirmation. The odds are bearish though. A sharp move down could happen any time now. Let’s explore the hypothesis from different angles.
After the confirmation of the Spinning Top in a sharp move down, gold seemed to pause for 2 days. The formed doji are bearish and they both closed below 8 EMA line in the last hours before the daily cut-off.
The indicators were approaching the state where a sudden flush could be triggered. As the candles rested for 2 days, a sharp decline could happen any time now.
My projection of a possible wave that I charted yesterday stays.
Remember that gold was damaged greatly in June on the monthly and weekly frames. The long-term odds are still on the dark side.
If gold closes tomorrow:
– above $1826, expect a possible rally;
– below $1795, a wave down is underway
– Anything between – another indecision/pause day, to be assessed after closure.
The longer term forecast and targets were discussed in details in the Monthly Analysis (link below).
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