Looking at the weekly chart indicates bearish trend with lower high formed.
Combination of weekly chart and DSS indicator showed another bearish divergence, historically followed by approximately 200 days downtrend action.
Cycle reversal expected mid September with possible price targets for long position between 45-50.
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Couple of signals to outline bearish trend on gold
1. Lines work until they don't
- blue trendline has been providing confirmation for long term uptrend since 2019
- however line is getting tested more and more, each test increases probability that line breaks
2. Lower high formed mid-May
- gold briefly broke previous ATH in august 2020 just to pullback
-...
Not gonna lie 50% correction does not exactly feel like "the bull market"...
1. "Resume the bull market" scenario
By overlaying chart from previous cycle we can spot some similarities:
- market reached 64000 levels little bit faster than in last cycle and got overextended by approximately 15%
- descended to 29000 levels also overextending by approximately...
