Gold GC-Mini Market Analysis
The Gold GC-mini has been firmly in bear control since the beginning of March. The bulls have been putting up a fight for most of this time, however bulls bail out once they are able to drive prices up enough to perhaps fix their stuck positions. For the most part, bull strength is represented by bottom tails as opposed to strong follow through bars above previous bull bars.
Bears have been using pullbacks as entry opportunities. The gold market continues to put in a series of lower highs and lower lows, breaching though not closing a body beneath the previous major neckline.
Daily bears were able to close bars in a strong down side break out of the bear channel. As well, daily bears were able to reach a measured move target the size of the trading range that extended into mid-April. On Thursday and Friday daily bulls sent prices back up to the lower trendline of the channel. This is a critical area. Bears want to use this previous support as the new resistance. Eager bears want to find discounts for continued selling when testing the trendline if it does flip into resistance.
Gold GC-mini futures
The Weekly Gold chart
- Bear bar closed above the 50% mark of the week’s range. A weak sell signal.
- Found support near the October bear leg bottom tail.
- 6 of the past 8 bars are bearish.
- Price was able to dip beneath the previous neckline occurring in March. However the body of the bar was unable to close underneath, finding buyers and bear profit takers.
- The tail creates the 3rd major lower low since the parabolic correction.
- Bulls want to send price up in order to stay within the trading range.
- Bears able to get follow through beneath last week’s bar.
- Bulls want to close a bar above the moving average.
- Bears want to sustain the large gap between price and the moving average.
- Bears want to hit measured move targets created by previous consecutive bear bar legs.
The Daily Gold chart
- Bulls trying to prevent the downside breakout by keeping price in the bear channel.
- 3 weak bull bars and 2 strong bear bars.
- Bears remain in control. The 20 moving average crossed beneath the 200 moving average.
- Bears now have the psychological 4000 in their sights.
- Bulls want to bring prices back up to the moving average. Ideally closing a bar above the moving average.
- Bears want to sustain the large gap between price and the moving average.
- Bears are steadily accelerating price downward. Bear bars are getting bigger.
- Bears are able to get a measured move from the trading range dating back to the middle of March.
- Bears want to turn the channel bottom support into resistance.
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