Gold appears to have started a rally, however, there are several data points that hold me from turning bullish. Let’s have a look into details.
Today’s candle closed above 20 EMA. However, the structure of the candles points that the wave is likely corrective and a pullback can be expected any time.
From the RSI perspective, gold has been rallying for 5 days, but the RSI is still below 50. Makes one think. The other indicators from my pool are mixed.
In order to confirm the short term rally, I need at least one more green candle to close above 20 EMA.
The detailed interpretation of the quarterly/monthly/weekly candles is available in the Premium Content of the latest Weekly.
Gold was damaged greatly in June on the monthly and weekly frames. The odds are strongly on the dark side.
Gold formed a Hammer on the weekly time frame and it can be viewed as the beginning of a rally. However, the Hammers require confirmation that could come this week. The details and the Long Term Forecast are available in the latest Weekly.
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Long Term Forecast for Silver – Premium Content (subscription required)