Gold in Lower Time Frame Bullish Correction 1/19/21
Kitco Commentaries | Opinions, Ideas and Markets Talk
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On a higher timeframe basis: I cautioned on 8/16/18 the break above $1,179.7-$1,183.7 warned of renewed strength. We have seen $905.5 of this. We held an exhaustion within this at $1,275.6-$1,269.0 with a $1,274.6 low and have rallied $814.6. The break above $1,347.0 projected this upward $80 minimum, $320 (+) maximum. We have attained $744.2 of this. We held another exhaustion within this at $1,416.0-$1,413.7 with a $1,412.1 low and rallied $676.9. On 4/2 we left a bullish reversal below. We have seen $470.7. We have seen $398.2 of the strength warned about above the $1,690.3-$1,691.0 area. The above bullish formations have been ON HOLD since 12/31/20. I noted we had a higher timeframe exhaustion to contend with that came in at $2,071.6-93.2 that had the potential to bring in a bearish correction—we held this at $2,089.2 and have rolled over $322 into that correction. The trade back below $2,043.6 has brought in $276.5 of the decent pressure we were looking for. We held exhaustion above at $1,999.7-$2,006.5 with a $2,001.2 high and rolled over $234. The 1/8/21 move down suggests one of two things: 1.) this may be in a new macro bearish stretch, putting the bearish correction from $2,089.2 down back in play, or 2.) we may be building a higher level of consolidation up here—I think the first is more likely. These are now ON HOLD (see below).
On a lower timeframe basis: The decent trade below $1,915.7 (+2 tics per/hour) brought in $114.9 of the $75 (+) maximum. The trade below $1,854.6 (+5.5 tics per/hour) brought in $48.8 of pressure. The decent trade below $1,831.5 (+1.2 tics per/hour) projects this downward $29 minimum, $107 (+) maximum. We attained $30.7 before short covering off the low. These are ON HOLD. We basically held the first key exhaustion at $1,809.0-04.4 with a $1,800.9 low and rallied $43.3 so far into the probable correction against the move down from $1,962.5. The short cover back above $1,820.0-17.1 has brought in $25 of strength. Decent trade above $1,850.8 (-1 tic per/hour starting at 8:20am) will project this upward $53 (+) but will have to contend with exhaustion levels on the way up.CLICK HERE FOR FULL ARTICLE.
NOTE: this is just a small portion of the market calls I provide my clients twice daily in the Gold and Energy complex. 'Decent penetrations' are specific amounts and provided to clients daily as well. If you are interested, please feel free to reach out.