Yesterday’s attempt to establish a rally was brutally canceled today. Gold was pushed below 200 MA line for the fourth time in four months with a strong bearish candle, an Engulfing this time. Let’s have a closer look at the metal from different perspectives.
While the quarterly and monthly frames remain bearish, the weekly are neutral and the daily back to bearish. I am not sure gold would be able to recover after today’s blow and flip the weekly and monthly odds bullish in the remaining 3 days.
Any red candle tomorrow would confirm a further move downwards. If a green candle closes above ~$1800, it would be a first bullish sign, though the odds of this event are low.
Yesterday I wrote: “If gold continues higher tomorrow, I would adopt the blue count as primary.”
It did not happen, so the red count remains the primary.
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