Gold forming a triangle with its steeper line. If it were to break down out of this triangle, first target would be 140 (1400) - this is also a 38% retracement line of the move from 08 bottom to the 11 top. I know this defies reason considering the lowering of swap rates and other inflationary tactics, but whatever.
Long term hold short seems to have found a temporary higher bottom than during the summer.
McClellan Summation index has some room in price, TSV, and Stochastics to the upside in the shortest term. I know this is unbelievable. I also marked the beginning of previous Decembers, which as you can see were all up for the last four years. I have fought seasonality before and lost. I probably will not fight it this year, but I need to see how this indicator breaks over the next few days.
Medium term development still positive. Shocking, I know.
Short term overbought. We will have to see how violent correcting this gets to get an idea of what happens next.
Things are not good. But to trade, you must know rationale and reason in order to take the opposite position. I will not buy until my short term indicator works off its overbought condition and forms a firm bottom.
"Most ignorance is vincible ignorance. We don’t know because we don’t want to know.”
-- Aldous Huxley
