As a quick update to this video from February on the precious metals, it now appears that the chart pattern in gold has morphed into a larger descending triangle. Within the context of a downtrend, bottom-pickers simply must respect the fact that these patterns tend to resolve lower, acting as continuation formations. Hence, revenge trading a vicious precious metals market in recent months is not the way to go for once-glorious bugs.
On the first chart below of the daily timeframe for the GLD ETF, you can see that Monday’s promising bounce led to yet another bull trap within an overall downtrend, as so often happens. Moreover, the light blue lines denote the larger descending triangle in play.
Going one step further, on the weekly chart, second below, you can see that gold could easily come down to $148 for a major test of that significant reference point dating back several years.
While gold bugs will argue that the best time to buy the metals in recent years has been when they looked the worst, technically speaking, that rationale amounts to sacrificing pieces in a chess match in favor of gaining a tactical advantage. Eventually, you trap yourself…
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Fundamentals win this one out, CnW, as gold dies a slow and horrible death
I’m no chartist; however, if you look at a chart of gold – I only have the rudimentary finviz.com chart to reference from the futures icon, it appears to be simply trading in a range – $1800 resistance, 1500-ish or a few dollars below as support the past few months. I do agree it’s prudent to wait and see if support holds. Just an eyeball reference for me though.
Sentiment, cycles, support, … I don’t know if I can find any more sibilance to sustain my serenity.
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Might need to get down to that $148 support first…
Seriously, what does support and cycles have to do with the price of gold?
What do oxygens and sunlight have to do with your continuing respiration?
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The gold trade seemed to be the
ultimate F–U trade against
fiat currency, but now with
bitcoin will gold be priced
more in line with the baubles
you can make from it
Difficult. On one hand we have clever people saying its a generational top on gold and on another hand we have clever people saying at these prices it’s a gift from the gods. I guess the only way to play this is with proper set ups and tight stops.