Trump’s 9:35 AM tweet concerning China stopped gold in its tracks on Thursday precisely at the cycle trendline. Gold topped immediately at $1491.60 and reversed sharply. Closing below the dashed support line in the coming days would establish a breakdown and promote a decline to $1410 – $1420 by Christmas.
THE 28-DAY CYCLE
The near-term gold cycle has been stair-stepping between highs and lows every 27 to 30-trading days. Thursday’s reversal occurred on the 28th day and supports an interim top at $1491.60. A breakdown below $1462 would establish the next leg lower, recommending a bottom and subsequent buying opportunity between the 20th and 26th of December.
I’m bullish on gold, but the correction seems incomplete. Breaking to fresh lows in December would give commercials an opportunity to rebalance their short positions, which have remained near record levels.
Longer-term, I believe gold is starting a new bull market, and any dip from here should be considered a buying opportunity.
AG Thorson is a registered CMT and expert in technical analysis. He believes we are in the final stages of a global debt super-cycle. For more information, please visit https://goldpredict.com/
This article was originally posted on FX Empire
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