Gold and the shrugged-off anti

“Gold shruggs off an anti. A turning point?”, we wrote last September in our analysis of the weekly GC chart. Evidence-based technical analysts will know: the failure of a weekly pattern is an event that deserves attention, the market itself being the only leading indicator.

Bullflags on weekly charts can take weeks and months to develop, and, as Remek! Premium subscribers can tell, we were not totally inactive on precious metals in the latter part of 2019. (See another example here.)

GC 2020 01 06

Today you switch on the radio and the world is talking about gold as if today’s chart were a surprise. (2011 anyone?) For evidence-based technical analysts, however, the structure has been clear for months, the real task has been to trade it within a given risk management framework.

Lastly, you may also want to ponder the two images on the right: a weekly gold chart and the idealized Wyckoff cycle. Time will tell if our hunch is a good one.

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ZB study

An interesting multiple timeframe interplay on the ZB today: The failure of what could have been seen as a bearflag on the daily, except the LTF 240min provides some clues to the contrary, in the form of a failure test: testing for stops at the lows, followed by price rejection. All in the context of a weekly bullflag (see below). Just an example how price action on the LTF (240min) and the market structure on the HTF (weekly) can talk to us and tell us to skip the potential short on the trading timeframe (the daily). Also, as you can see on the 240min, we were expecting the bullish breakout yesterday. Looks like the move is coming, only with a slight delay. Mindful trading!