Let’s Try This Again…
You may remember my blog back on January 29th titled “Fools Gold“ where I put forth some reasons I believe gold was a short. Welp, I was wrong. It happens. But, I think we have another opportunity to profit from selling Gold in the near term. Here is what I see:
First we have price coming up under heavy overhead supply as evidenced by the 5 year continuous Volume Point of Control just 10 points higher in Gold futures. Price broke below the rising wedge spanning 2017 and part of 2018. It will take a colossal effort by the Gold bugs to push through this resistance. Further, on a more short term chart we have a bear flag setup:
Futures traders can plan to dig deep into the intraday charts and surgically define their short entries soon. Others trading options or playing inverse ETFs might begin to think of starting a position in the next few days. Use the $1320 level as your frame of reference and as the shiny stuff approaches that price plan on some push back lower from the stranded souls above.
Trent J. Smalley, CMT