Gold failed to follow through on Friday's bullish "hammer" candlestick yesterday, trading in a $20 range with the 200 DMA at 1662 providing resistance and 1642 providing support.
If we see follow through buying in the next session or two, this will go a long way to confirming the bottom at 1625 and the end of Wave C, however the price action this week has not been encouraging in this regard and, until 1662 is broken, the probability of further declines and a retest of 1625 remains high.
Sentiment for gold is overwhelmingly bearish at present, which could be viewed as a bullish contrarian indicator and the huge volume that accompanied the "hammer" candlestick on Friday is another bullish signal. There is also bullish RSI divergence on the daily chart from the 21 December low.
As usual, we will wait for the charts to tell us the way forward - for our subscribers at www.goldtradingexperts.com, today's video confirms our strategy for our next trade.
If we see follow through buying in the next session or two, this will go a long way to confirming the bottom at 1625 and the end of Wave C, however the price action this week has not been encouraging in this regard and, until 1662 is broken, the probability of further declines and a retest of 1625 remains high.
Sentiment for gold is overwhelmingly bearish at present, which could be viewed as a bullish contrarian indicator and the huge volume that accompanied the "hammer" candlestick on Friday is another bullish signal. There is also bullish RSI divergence on the daily chart from the 21 December low.
As usual, we will wait for the charts to tell us the way forward - for our subscribers at www.goldtradingexperts.com, today's video confirms our strategy for our next trade.
