printpdfimage

Golds quick price move increases the odds of a correction
Created on: 7/3/2020 4:30:49 PM   Last Update: 7/3/2020 4:43:45 PM Posted by: RTT

golds-quick-price-move-increases-the-odds-of-a-correctionEvery market corrects, maybe profit taking, maybe of allowing those who missed out, to get in!


The current open interest on the gold contract looks to high after a very fast price move, it looks like 2008 may be repeating. A quick flushing out of the weak hands open interest may take place before a real advance in price takes place. The correction may be on the back of a wider sell off of risk assets (either before of after US elections) as all assets suffer contagion selling (just like 2008).

This blog view is a gold price correction of 10% to 20% range is a buying opportunity. Of course we may see  a very minor price correction but a long time correction, a price or time is correction is expected, we shall watch and wait.


The explosion of open interest (chart below) along with gold price suggests 'all have loaded up', the big boys wont like this as they will not want to share gold gains with the public, one therefore can expect some sort of wash out of the weak public hands holding of gold future contracts before a real advance takes place. 


Gold open interest






Also price has meet channel resistance.

Gold channel




Also price is near upper resistance of the previous high.


Gold gann



Divider




NOTE: Posts here are the lite version, more depth on each subject can be found via our RTT Plus membership.

Changes in the world is the source of all market moves, to catch and ride the change we believe a combination of Gann Angles, Cycles, Wyckoff and Ney logic is the best way to ride the change, after all these methods have been used successfully for 70+ years. This post is a delayed and small sample of what is avaliable to members. Sign up to enjoy the full service.


NOTE: readtheticker.com does allow users to load objects and text on charts, however some annotations are by a free third party image tool named Paint.net

Investing Quote...

.."Experience has proved to me that real money made in speculating has been in commitments in a stock or commodity showing a profit right from the start.”..

Jesse Livermore


.."No amount of evidence will ever persuade an idiot"..


Mark Twain

.."Socialism in general has a record of failure so blatant that only an intellectual could ignore or evade it"..


Thomas Sowell

.."It does not take a majority to prevail, but rather an irate tireless minority keen to set brush fires of the freedom in the minds of men"...


Samuel Adams

.."The financial markets generally are unpredictable. So that one has to have different scenarios... The idea that you can actually predict what's going to happen contradicts my way of looking at the market."..

George Soros




© Copyright 2022     www.readtheticker.com (or 'RTT')


Source URL: https://www.readtheticker.com/Pages/Blog1.aspx?65tf=3888_golds-quick-price-move-increases-the-odds-of-a-correction-2020-07

Public Disclaimer