Traders need to adapt! I couldn’t argue with price action in gold last week, and I can’t argue with it today, either. I wrote that a move to $2010 was likely; bulls fell 3 dollars short of that target this week.
Still, the daily chart shows a confluence of resistance at $2010. I think the worst thing for bulls is that the price continues sideways till around Christmas. At best – a quick run to $2070 comes into view, with a convincing breach of $2010.
On the 4-hour timeframe, the upward trendline from $1930 is clear. Of course, I will let the trendline be a guide. Bulls look to be supporting a triangle pattern in progress, and momentum is turning up for them as well.
It is absolutely no surprise that stocks are higher yet again this week. Is it time to sell? I suggested that the top Bollinger band on the weekly timeframe could pull price up; we aren’t there yet. That said, the ascent in the S&P has been steep, to say the least, and some sort of sideways move or pullback is imminent. I’m not ready to call the top here, though, and as of now, my base case is that dips are for buying.
Thanks and have a great weekend.
