Here is a brief follow-up on the potential contracting diagonal in daily gold. Prices should be watched to see if the current bearish engulfing candle is maintained for the day.
The hourly chart has a valid expanding diagonal off of the highs as below. This suggests - at the very least - monitoring the high to see whether it is maintained or not.
At the present time, the potential daily contracting diagonal is seen as 'ending' at C = 2 x A. Only if price gets above the high should it be considered as a candidate for a leading diagonal. The current hourly expanding diagonal needs to prove it is 'leading' with lower daily lows or it may be ending.
Have an excellent start to the day.
TraderJoe
today's move in ES - some kind of C of a B wave? It looks very suspicious
ReplyDeleteLooks like bears got trapped on this mornings job report. ES looks like its hitting top of corrective channel. I have a growing concerns on the gold diagonal. 5 looks to be longer in time than 3.
Deletegold futures can go to ~1909 before contracting diag is invalidated.
DeleteLonger-term interest rates fell today, perhaps encouraged by the jobs report showing the economy weakening a bit. So the USD fell. And GLD popped to a new high. Thereby invalidating TJ's topping counts. Seems like GLD should pay more attention to the weakening economy and the Fed's resolve to drive down inflation. But GLD is influenced by both factors and therefore does not seem to be a leveraged short, unless you use puts.
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ReplyDeleteTJ