GOLD: Let’s Take A Closer Look
Gold Is Sitting On A Price Shelf And Weak At This Moment
Building on what we posted yesterday, let's zoom in and look at the price structure for Gold today.
The first thing I want you to notice is that the red horizontal line shown on the above chart is not a random 'lowest-low' choice. That wouldn't be enough to warrant a call on a change in price trend direction.
However, this very same price zone represents the break-away point for the price gap that occurred on the way up in price for Gold as well, and, this means that heavy orders are placed at this price area to counter-act those that got institutions Long on the way upwards.
And, what's important to these big players is also important for us as traders and investors.
Watch For Price Closes & Bar Ranges That Go Above Or Below These Lines . . .
GOLD will signal either it's weakness or it's strength by allowing prices to significantly pass through these two price areas.
In order to re-assert it's longer-term up trend, prices must Close and have most of their bar ranges above the green dotted line shown. Even that won't guarantee a new upsurge until the same happens with the absolute top price as well.
At present, price is closer to the red horizontal price line than the green one.
Watch to see if this remains the case over time as price action must weaken in order to break below and start a new downtrend in prices.
Once again, Be Aware of this downside price possibility as no one else is warning about this at the moment. - Good Trading. - George