Although gold breached the bottom of the channel I showed yesterday and did go on to print yet another low at $1,890 spot, the trade opportunity I pointed out – that is, a return to the top of the range, lives on. Price is fighting to stay in the clearly defined channel, as shown in the daily chart below; in fact, yesterday’s daily reversal candle adds a little weight to the trade probability, in my opinion.
While I am still looking for more concrete signs that a bottom that could lead to a sustained move back up is in for the metals (Platinum may be closest here), as a nimble trader, I remain very open-minded to engaging in short-term opportunities.
Am I wrong about the S&P filling the open downside gap I have been showing? Certainly, the market has been proving me wrong thus far. In hindsight, it is clear that no significant drop was likely ahead of Independence Day weekend, of course (I may need to adjust my tinfoil hat here). That said, contrary to some raging bears out there, I would be in no rush to short this market with any serious conviction. Nor would I be in a rush to add to long positions unless and until the price can get over 4500, which is the blue resistance level (shown prior) on the below daily chart.
And to finally, the weekly Bitcoin chart, presented without commentary, only a question; how does the below look bearish?
Thank you, and have a great long weekend
