GOLD TRADE ALERT (3:30 pm EDST)
Both gold and silver prices surged early this morning but then fell dramatically. Silver made a new weekly high but gold did not. This is a strong intermarket bearish divergence signal, and it's happening near the center of our reversal zone specifically for precious metals (July 30 - Aug. 11). In yesterday's blog on gold I wrote:
" It looks like gold started a new cycle off its $1752 low of June 29. That would make gold bullish. But it's still possible that gold is completing an older cycle and is ready to fall to the final bottom of that cycle - below $1752. Even if gold is a new cycle (most likely), it is due for a sub-cycle correction soon."
It seems like that correction could happen now, and there is a chance it could fall below $1752. Because our long position is now at a break even point, I am going to sell it today (no loss) and wait to see how far any correction will go. We will look to go long in both silver and gold after they take corrective drops.
Selling my long position in gold today. Still on the sidelines of silver.
Both gold and silver prices surged early this morning but then fell dramatically. Silver made a new weekly high but gold did not. This is a strong intermarket bearish divergence signal, and it's happening near the center of our reversal zone specifically for precious metals (July 30 - Aug. 11). In yesterday's blog on gold I wrote:
" It looks like gold started a new cycle off its $1752 low of June 29. That would make gold bullish. But it's still possible that gold is completing an older cycle and is ready to fall to the final bottom of that cycle - below $1752. Even if gold is a new cycle (most likely), it is due for a sub-cycle correction soon."
It seems like that correction could happen now, and there is a chance it could fall below $1752. Because our long position is now at a break even point, I am going to sell it today (no loss) and wait to see how far any correction will go. We will look to go long in both silver and gold after they take corrective drops.
Selling my long position in gold today. Still on the sidelines of silver.
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