I had an extremely distressing email this week from a user who after my last gold email went long. I specifically said that gold was in accumulation and would zigzag till weekly resistance was broken. AGAIN THIS REINFORCES THAT THESE NEWS LETTERS ARE FOR EDUCATION ONLY.
So lets look at gold again and my opinion has not changed
Weekly Gold Chart
The price is in a Hawkeye Zone, indicated by the cyan arrows. Now look at the Volume – four red and one green bars, followed by two red bars. But the last two red Volume bars have no effect on the price. The Zones are holding and the Hawkeye Trend dots are starting to go flat = no momentum.
Daily Gold Chart
Thursday there was a down day and volume was rising, but not enough with the range of the bar to show aggressive volume. Hence, on Friday the price rallied and closed at the Hawkeye Trend dot on declining volume, indicating no follow through on the previous selling.
Look at the two dotted lines indicating the congestion zone. I do hope you guys really study the Six Ways a Market Moves.
Still in accumulation mode, the longer term bias is short, so wait until the weekly goes long, but it could be a great trade for 2016.
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[The cyan arrows are for illustration only and do not form part of the software]