Finally a Bullish Arc Reversal for Gold
Wed, Oct 19, 1:11 PM ET, by Corey Rosenbloom
After sharply plunging at the beginning of October, Gold is now making a bullish short-term reversal higher.
Let’s update our @GC Gold Chart, pinpoint the positive divergence, and overlay a Fibonacci Target grid for clues:
For Weekly Members, we were bearish going into the $1,350 target level as negative momentum divergences undercut the rally up into our resistance level.
Price fell toward our initial target then collapsed suddenly, unexpectedly, on October 4th.
The “alternate thesis” sell-swing pathway – discussed with members – opened a pathway down toward $1,250.
We were cautiously bullish on Gold into our $1,250 level especially as positive momentum divergences developed at a key higher timeframe support level.
We’re now seeing the initial movement – rally – “up away from” our $1,250 target toward our first Fib Level.
With price at $1,270, focus your attention here and look to play bullishly through the “Open Air” and higher Fibonacci Retracement levels should buyers push Gold above $1,270.
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Corey Rosenbloom, CMT
Afraid to Trade.com
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Corey's book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).
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SDI Glossary: "Retracement" Definition
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