Gold: Watch Tonight Carefully; If Re-Test 1500 Go Long
Today in the general market we saw a decent bounce across the board - domestically and internationally off momentum from Friday. For the first time since our entire Gold run, I am neutral on the immediate (few days outlook) on Gold. However, if we re-test 1500 tonight I am very bullish again.
I hinted at the chance of 1500 and suspected if it dropped below 1500 there would be enough buyers to maintain a price level close to 1500. While it did drop a few dollars more than what I expected, it was certainly not near the 1440 that everyone was forecasting.
I visualize today as a point where bears had a strong chance to punish Gold and let it sink, however, there were indeed enough buyers to keep it close to 1500. I also noted that I do not see Gold dropping below 1484 and I still hold my view on this.
There are two possibilities that could happen:
1) Current price to 1485 tonight and/or tomorrow before a bounce eventually to 1540 fairly soon.
2) Current price to 1500 with a bounce eventually to 1540 fairly soon.
I am leaning towards option 2) as the market had an exceptional day and the bears failed to push it below 1495 on average. As such, watch to see if we re-test 1500 tonight. If we do, that would be a great chance to re-enter long.
In the long-term though (2020, 2021, 2022, 2023 and 2024) I am extremely bullish on Gold. Once we breach 1600 Gold will make huge moves. Currently its about finding the proper entries in the low 1500s as we are in now.
- zSplit
I hinted at the chance of 1500 and suspected if it dropped below 1500 there would be enough buyers to maintain a price level close to 1500. While it did drop a few dollars more than what I expected, it was certainly not near the 1440 that everyone was forecasting.
I visualize today as a point where bears had a strong chance to punish Gold and let it sink, however, there were indeed enough buyers to keep it close to 1500. I also noted that I do not see Gold dropping below 1484 and I still hold my view on this.
There are two possibilities that could happen:
1) Current price to 1485 tonight and/or tomorrow before a bounce eventually to 1540 fairly soon.
2) Current price to 1500 with a bounce eventually to 1540 fairly soon.
I am leaning towards option 2) as the market had an exceptional day and the bears failed to push it below 1495 on average. As such, watch to see if we re-test 1500 tonight. If we do, that would be a great chance to re-enter long.
In the long-term though (2020, 2021, 2022, 2023 and 2024) I am extremely bullish on Gold. Once we breach 1600 Gold will make huge moves. Currently its about finding the proper entries in the low 1500s as we are in now.
- zSplit
