Despite rumors of a Gold rally that permeated the ideashpere over the weekend, the precious metal continued to sell off today, closing near the bottom of the day and down 14 points. Last Friday's candle, while an up candle, still closed the day, and the week, under both the 7 and 21 day moving average. It was also a red Heikin-Ashi candle. In fact, all the indicators are also red. Finally, I want to point out the if price is trading under both 7 and 21 day moving averages, it is statistically probably that price will hit the lower Bollinger Bands. While nothing is 100% in trading, the odds are definitely in favor of touching the lower Bollinger Band. The haDelta indicator has printed a new magenta dot which signals that the smoothed moving average has turned down below the raw price delta.
I do want to call out that Monday's Heikin-Ashi candle did have an upper wick, which is not usually present in a strong trending situation. Let's treat this as a warning only and watch what happens when price does hit the lower Bollinger Band.
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Disclaimer: This post is for educational purposes only. Trading is at your own risk.
If you like this post, please click the Lick button, tell your friends, and re-Tweet!
Disclaimer: This post is for educational purposes only. Trading is at your own risk.
