Gold GC-Mini Market Analysis
The Gold GC-mini after testing a record peak has spent this past week in a tumultuous correction, showing that even the strongest bull trends need to «reset». The Daily GC mini chart shows a classic scenario of an extreme parabolic wedge top, a deep retracement, and now, a market struggling to determine if this is a major trend reversal or just a deep pullback within a massive bull trend. Bulls are still firmly in control as evidenced in no lower lows in the overall structure.
Keep watch on the psychological $5,000 level, bears want to make this resistance, bulls want to make this support. The sharp-eyed trader will be looking for failure by either bulls and/or bears to inform their decisions.
The Weekly Gold chart
- Weak bull doji bar.
- Bulls did get some follow through after last week’s strong bull bar.
- Price is hanging in the middle of the range.
- Price is still in a complex correction.
- Bulls are looking to create a higher low.
- Bears want to continue the correction downward after defending the midpoint of the range.
- Shifting from parabolic then spike down, to sideways and up.
- Weekly price still maintains a large gap between price and the moving average.
- 5 of past 6 bars are bullish.
The Daily Gold chart
- Bear spike followed by bull channel.
- Bears hoping that the bull channel is actually a bear flag.
- We are in the middle of the range. Bills and bears will both proceed with caution.
- Thursday dropped price to the moving average. Bulls jumped in buying at the moving average.
- Bulls continue to treat bear bars as pullbacks.
- Bulls continue to put higher highs and higher lows since the deep price drop.
- Bear bars had smaller tails beneath them than last week’s bear bars.
- Bulls want to continue to push price higher, ultimately to new all time highs, providing relief for stuck bulls at the top of the range.
- Bears are trying to create a double top.
- Bears still able to defend body gap appearing between 1/27 & 1/28
- Overlapping daily bars since the correction.
- The past 10 bars are split evenly with bulls and bears printing 5 bars each.
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