Gold Correction Underway

Taxes

© 2019 Bloomberg Finance LP

Here is a summary of the bearish influences on the metal price :

Sentiment is too bullish.

The weekly graph shows a hook sell signal, a sign of coming weakness.

The monthly cycle topped on the 11th and the weekly cycle does likewise on the 17th.

The combination of the bullish sentiment and the cycle tops point to a volatile week to the downside for gold. There is an irregular cycle that bottoms on the 20th which has set off short-term rallies in the past. This is likely to touch off a short-term rally in the last week of the month.

Both cycles bottom in the second week of October. I expect gold to fall to at least $1440, the 38.2% retracement of the prior uptrend, before the uptrend resumes.

Chart 1: Gold Weekly Cycle

Cycles Research Investments LLC

Chart 2: Gold Monthly Cycle

Cycles Research Investments LLC

Articles You May Like

$100 million worth of crypto has been stolen in another major hack
What you need to know about staked ether, the token at the center of crypto’s liquidity crisis
WWE boss Vince McMahon steps away from CEO role, will address misconduct probe on ‘Smackdown’
Are You Setting Yourself Up For Unhealthy Aging?
Inflation and recession fears are squeezing some industries more than others

Leave a Reply

Your email address will not be published.