Gold experienced a sharp decline today, while Gold Stocks were massacred with a 7% decline in one day. This kind of price action was very important to remove the excessive optimism that had plagued the Gold market.
Since early July, Gold has been consolidating sideways. Following chart shows a potential pattern being traced out by Gold.
Gold price action appears to be corrective in nature i.e. first decline was followed by a triangle formation. Triangle has recently broken to the downside. Minimum target of this pattern will be a decline below 1310. We think that over the next few days, gold will bottom around ~1300 and then it can resume its trend. This level signifinies Fibonacci ratios and support line.
This decline will also bring back the bears and force many weak longs to get out of the market, just before the next rally phase, according to Market Classification Model.
A proprietary algorithm that classifies market conditions i.e. Bull market or Bear market. Currently, this model is suggesting a longer-term up-trend for the US Stock Market. For Subscription click below:
Since early July, Gold has been consolidating sideways. Following chart shows a potential pattern being traced out by Gold.
Gold price action appears to be corrective in nature i.e. first decline was followed by a triangle formation. Triangle has recently broken to the downside. Minimum target of this pattern will be a decline below 1310. We think that over the next few days, gold will bottom around ~1300 and then it can resume its trend. This level signifinies Fibonacci ratios and support line.
This decline will also bring back the bears and force many weak longs to get out of the market, just before the next rally phase, according to Market Classification Model.
A proprietary algorithm that classifies market conditions i.e. Bull market or Bear market. Currently, this model is suggesting a longer-term up-trend for the US Stock Market. For Subscription click below:
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