Gold

Monthly chart of Gold.

The once great metal has become the metal nobody wants and how clear it is from the 10 mile view. Given the media pimping it is not surprising it got so high given it was made out to be a safe haven. A break down of where all this nonsense started.

Within the grey box is where professional money became highly active and two candles termed cross swords can be seen near the left end of the box. You will see this formation is common to all time frames and has several useful effects/results that pro money want. It gets new traders long, the reverse stops them out, it gets more traders short and also stops them out. Each time those stops are taken, it is a cheap way for lots of money to enter the market because they get the best price without showing their intentions in the clear.

Only after price has left the area in the direction of the original break do we see strong buying that is clear for anyone to see, if this were a lower time frame and you were stopped out and later saw price move in your direction it would be both an emotional high for getting the direction correct, but also an emotional low for not waiting for the right time to enter. And I will bet you still would have chased price after it broke, because you were right all along. C'mon own up, you all have done this.

The various lines are targets from price to react off on the way down. Any of them could bring a bounce and new buyers, but for how long and what are they buying into?...this is clearly a bears market.

Note the middle line, that is 1000USD and a price of great interest to see can it hold.

Weekly chart.

The green line entitles WB is the Warren Buffet line. So named for his comments on bailing out of Gold at 1500USD. It is up to you to believe it, but the chart later had us heading to 1900USD before ultimate failure. And do take note of the fact that the move from 1500USD to the top was pure parabolic and NONE of those moves are sustainable. It was nothing more than milking what was left in it and also take note of the time taken, a matter of weeks.

There was a deep pullback into the origin to get more long orders, but the move away was not showing promise and yet with the all the media talk price still moved up to the area where price broke the top and failed again. At this point the game was up and pro money had to distribute all they had and prepare for the inevitable. The black line shows where they had filtered out most of their longs.

The two arrows show attempts to go long from fresh touches into old demand. Given the weight of pro money bears above, would you have taken that long?

Daily chart.

Not a lot I can add on here other than the two lines showing what is a large range play. We are close to the bottom line and an obvious target and so any shorts would be for small gains. Do take note that a single line is in reality an area and not a single pixel target to the penny. Use the extend of the candle body for price reaction. i,e in this instance the bullish candle tail and lower end of the real body in June....look to the left of the chart.