First, as profit-taking ahead of the long weekend, which is normal.
Second, that the market tried twice to break lower and failed. As far as technical analysis goes, 80% of breakouts fail at the first attempt.
So next week will confirm if this is indeed the start of a bounce.
For those who follow my Newsletter, you know that prior to Christmas, I went bullish on Gold and chose NEM Newmont Mining as my preferred stock to trade this move.
Lets look at the charts.
A low-risk entry at the end of 2015 when the 133-minute chart clicked into the upside. I was stopped out on February 25, but will reenter if last week’s high is taken out by a close.
After such a strong move lower, the odds of some sideways trading action is very high.
Markets don’t just fall off the chart; they run, then consolidate, then run again.
I believe we are in the beginning of a consolidation period.
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