If you’ve been reading a while, you know I exited my spec long from 1840 to 2250. Wilson, you idiot! You left profits on the table! Whatever, but we can see today there is a massive futures-led take down of the gold price on a Sunday night. Gee, I’ve never seen that before.
Anyway, if you’ve been looking to participate in the gold bull, where to get in? A couple of thoughts here, with the daily and weekly TLs in play.
My gut feeling is that we will not see a revisit of the weekly TL any time soon, but that’s just opinion. As a trader, I want to buy the daily and see if we get reaction there if that happens. If that doesn’t work out and we confirm below the daily, you wait for the weekly and try again. If we zoom out to the monthly, it offers some insight as to why and when we get price reactions. When you are at all-time highs, sometimes the only thing you can rely on are fib extensions and I am not the only one who thinks this way.
Fib extensions offer no predictive value, but they are likely pivots in a runaway market like gold. If you didn’t get out at $2250 like dumb Wilson, speculators will take $ off the table at these areas.
Fibonacci is your friend when nothing else makes sense