Gold - and even worse silver - just shat themselves.... my longs are all still open but looking dodgy.... had to throw a few grand into the spread bet account to be secure from margin calls.... ( don’t use SLs) Am convinced they will rise again and quickly, but curious to know how low do we think they can go short term...?
Gold (spot) has broken back through the 8EMA on the daily chart (that yellow line I keep talking about), meaning that it no longer has full time-frame continuity (i.e. monthly, weekly and daily all green).
Interestingly, it has formed a fresh volatility squeeze over the last two days. These typically lead to large price moves but we don't know which way the squeeze will fire (see below):
As regards how low we may go short-term, the 4 hour broadening formation chart I posted a few days ago remains true:
It's important to have an exit plan if you don't set stops - mine were hit and I'm back in "wait and see" mode. We can't impose our will on the market.
As Wattie says, if there are margin calls, everything (including the metals) will be sold hard. There will then be the mother of all bounces.
The dollar is also perfectly respecting the broadening formation I posted some time ago. But note that this has TODAY entered a fresh squeeze.
Buckle up!
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