In my opinion, the upward trend in gold remains intact; that despite the fact this pullback is deeper than what I thought, and what I wrote was probable.
Participants can now decide whether the trendline shown in the chart below (4hr) will hold, or whether another flush down to the yellow highlighted support area will occur.
I think support will hold, and that the spot price probably needs to consolidation between $1950-85 before the next leg up. If a dip to $1935 happens early next week, but is immediately reversed, then I would turn the bullishness on gold up yet another notch. That said a weekly close below $1935 spot would have me questioning the long side.
Bitcoin continues to hold up while momentum is increasingly oversold on the daily timeframe. Bears didn’t or couldn’t take the opportunity to knock bitcoin down yesterday morning as they did with gold. Again, I ask – What doesn’t go down must go up? I would still have preparation in place for a move down to the 200-day MA and trendline, but it seems that sellers are running out.
Thanks and have a nice weekend.
