Rocket, your TA is too technical for me....One has to be able to put all those indicators together and tell a simple story..
Here is the story...Quite some time ago, i gave Long a target of 67.50-68.00 on the XAU...On Friday we came very close at 66.54...And we may move up yet a tad on Monday to the target area, before we sell off...But I was not taking any chances by unwinding all positions...
The XAU pattern has been, as I have emphasized for many months in a Head and Shoulder Bottom pattern..Two left shoulders, two sunken right shoulders and a head...The pattern on the chart is 42.50 by 55.00..Add the 12.50 to 55 for long term price objective of 67.50...Price hit on Friday was 66.54..
Now we have flag pole patterns with pennant formations..First flag pole was 55 by 60 with retracement on the pennant of 2 points to 58..Then the past two days we have had a 7 point pole with no retracement yet in sight...
However, my warning lights are on, and yes, I know that in a bull market which was called here sometime ago, you can be overbought, and overbought, and overbought..But I have finally learned after losing my shirt twice over the past 10 years, it is better to follow firm disciplines, and take your singles and doubles on a regular basis rather than trying to hit the home run....
My ADX indicator now has a reading of 46 which symbolizes a very strong trend, prone, once over 42, to violent pullbacks...Also on my CCI 5 period and fast stochastic 8 period, I am observing lower peaks and a topping action...
Gann puts the pullback back to the 58-60 area..That is where I might entertain entry once again..
Good luck to all longs and it would be nice for you to show all those commercial traders who went short on Friday a lesson....
Regards and willing to be the Gold monitor cheerleader from the sidelines, Mark |
