GOLD - You Are Legend (Weekly overview in a private idea)
Weekly overview.
Sometimes it's important to take a look at the weekly charts so we don't lose sight of the big picture.
The most important thing you need to know about gold these days and in 2020-2021: " You know it's a bull market."
Gold is in a bull market since 2015 December. Even in the basing process it was printing higher lows :
In a bull market there are ICLs also, but the ICLs are not taking out the previous intermediate lows, maximum backtesting it. Just like the ICL we had in 2020 March:
This is the maximum we can get in a bull market as a correction.So when I see analysts are talking about how gold will drop below 1500$ in this correction I say I don't know what they are smoking but I definitely want some of that.
Banks are waiting with heavy cavalry at the previous ICL just like in 2020 March and they will buy the dip if the ICL is backtested. As we already had a backtest of 1446 this August , a chance of the backtest is below 1%.
How do I know this decline is an intermediate decline and we are having a severe correction just like in 2020 March? The confirmation was the close below the 10 EMA.
The break of the 2009 September high was failed to hold:
This is not a catastrophy , the bull market is not damaged as many people think. It’s just the sign that price run too fast too far and too late at the end of the intermediate cycle. The new gold traders – and especially RobinHood traders - haven’t seen tough steep corrections in the last 1 year so they think gold will not have deep corrections just a sideways consolidation and the next rally is starting.
In my previous ideas you already know my expectation for this decline to end is between 1750 and 1670.
Using the Fibonacci retracement this week we just tagged the 38,2% at 1839$.
The 50% will be at 1765$ and the 61,8% is at 1690$ what is very close to my original targets.
The last indicator I’m watching is the slow stochastic that should tag the oversold territory then I’M going to be ready to call the bottom.
Sometimes it's important to take a look at the weekly charts so we don't lose sight of the big picture.
The most important thing you need to know about gold these days and in 2020-2021: " You know it's a bull market."
Gold is in a bull market since 2015 December. Even in the basing process it was printing higher lows :
In a bull market there are ICLs also, but the ICLs are not taking out the previous intermediate lows, maximum backtesting it. Just like the ICL we had in 2020 March:
Banks are waiting with heavy cavalry at the previous ICL just like in 2020 March and they will buy the dip if the ICL is backtested. As we already had a backtest of 1446 this August , a chance of the backtest is below 1%.
How do I know this decline is an intermediate decline and we are having a severe correction just like in 2020 March? The confirmation was the close below the 10 EMA.
The break of the 2009 September high was failed to hold:
This is not a catastrophy , the bull market is not damaged as many people think. It’s just the sign that price run too fast too far and too late at the end of the intermediate cycle. The new gold traders – and especially RobinHood traders - haven’t seen tough steep corrections in the last 1 year so they think gold will not have deep corrections just a sideways consolidation and the next rally is starting.
In my previous ideas you already know my expectation for this decline to end is between 1750 and 1670.
Using the Fibonacci retracement this week we just tagged the 38,2% at 1839$.
The 50% will be at 1765$ and the 61,8% is at 1690$ what is very close to my original targets.
The last indicator I’m watching is the slow stochastic that should tag the oversold territory then I’M going to be ready to call the bottom.
