We were witnesses of a fat finger event on Friday. Someone sold 40.000 gold contract - around 4.000.000 ounces of gold - in one amount. Though I'm in the short side I have to say it was a nasty move again. These banksters are doing whatever they want.
On Thursday the chart started to look like range which is breaking out. By the close of Friday all hopes of bulls evaporated as we dropped back into the range again, and now it's really starting to look like a bear flag again . Fundamentals were not supporting the gold drop. DXY was down: tradingview.com/chart/1lscxz3l/
And we can take off the table the nonsense what I hear everwhere: "The money from Bitcoin is moving to gold" On Friday Bitcoin was down big. And gold dropped also.
Summa summarum they don't want gold to go up yet. If we compare the previous cycle lows to this bottom it's obvious this is not a V shaped bottom. We had a flat bottom last year December. But look at the prior decline. We don't have that decline right now. And actually this doesn't look like a flat bottom at all. It's looking like a test of 1260 coming again and I think this time it will break down.
I will be watching the 200 EMA , the 200 SMA and the 1260 level in this order. When 1260 breaks the party is starting. Don't be surprised if the break of these level is coming as a night attack again.
I think you will be right but not now. Not in November. Look at the previous Novembers when a downtrend was happening. This year Gold is actually moving up here in November. It might be weak but it's moving up. I looks as though Gold might be forming some sort of triangle. Which means it will confuse and test the patience of all until a catalyst appears. If my assumption is correct on the Triangle then it will complete by early December and then the quick flash crash to $1200 would happen.