Week to week Gold increased net long positions above the weekly long average. Shorts increased as well.
However the net average ( 13 period ) long is down 2 points and the net short is up 2 points.
Bias remains long but short strength maybe increasing giving early warning signs of a shift in bias
Gold is entering into a weekly supply zone . Will the bulls push it through or will the
bears bring it back to the most recent demand zone of around the 1140 area.
On the technical side Gold could be forming the right shoulder ( if price drifts into the weekly supply zone .
then the head ) of a very nicely formed Head & Shoulder
pattern. Another possibility would b a double top at the supply zone then a 123 short entry will be used to go short.
Only chart time will tell.
on Short bias i will be going short on a trend line break of the right shoulder on a 4HR TF. A more conservative entry
would be a neckline break with more data supporting an increase in short bias.
No trades planned on the long bias at this time until price breaks through the weekly supply zone and
retests it
Price does what Price does. Stay flexible in your analysis. Let price confirm your trade plans.
