Gold is due for a fall

February 9, 2017

 

Recently, gold has been on a tear. Reaching three month highs alongside Trump's presidency has the bulls feeling great. However, from a technical perspective, gold is due for a significant fall in the short-term.

 

Today, gold completed a "three black crow" pattern, indicating that a bearish reversal is coming. Additionally, inverse gold miner ETFs (such as JDST) popped today, with JDST being up nearly 8%. 

 

JDST has also formed an inverse head and shoulder pattern, indicating a bullish reversal in inverse gold miner ETFs, and a bad sign for gold in general.

 

I would anticipate a significant, but not killer, pullback across the entire gold market in the coming days (maybe till the end of February).

 

Update (March 11, 2017):

Gold had run up to nearly 1260 after this post. However, gold, as predicted, has pulled back significantly, to current levels of 1204. 

 

I had a position in JDST which I sold for a loss around 12.10 for I feared it (JDST) would go down further.

 

Hopefully you all made some money. Remember, always have patience. Best of luck to all!

 

 

Share on Facebook
Share on Twitter
Please reload

RECENT POST

December 31, 2017

February 9, 2017

Please reload

  • LinkedIn Social Icon
  • Twitter Social Icon
  • Instagram Social Icon

2020 Reddy Finance. All rights reserved.

  • LinkedIn Social Icon
  • Twitter Social Icon
  • Instagram Social Icon