Why You Shouldn’t Get Excited About Gold’s Mini-Rally | Metals Mine

  • Why You Shouldn’t Get Excited About Gold’s Mini-Rally

    From sunshineprofits.com

    Gold seems to be sleeping off its latest mini-rally and lacks the momentum to reach new highs. What happens from here? Has the USD bottomed? And what does it mean when we factor in the EUR/USD pair and poor economic indicators from Europe into the equation? Not much happened yesterday (Jan. 21), but what happened was relatively informative. And by “relatively” I mean literally just that. Gold moved lower yesterday and in today’s pre-market trading, doing so despite another small move lower in the USD Index. The moves are not big, but they are meaningful. They show that gold’s inauguration-day rally was likely ... (full story)

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Trader#F891
Jan 23, 2021 1:17pm
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Exceptional analysis if you ask me - but then again not necessarily correct (as in, may not play as projected). When you hear that the market is a chaotic system, it means among other things that a) markets evolve by persistent cyclic trends, and b) no 2 such trends are the same EVER (and this on any scale M1 - M9). As such, markets do not and will never routinely allow history repeat itself anything near what might allow traders and other participants to make extraordinary profits. Indeed, it is rare in practice and that is why those who use so-called price patterns in "technical" analysis would earn no more than normal profit or loss over time. Regardless, we should soon find out whether you are wrong or right (within the limits of chance) by your own stated time horizon. Incidentally, last Friday's market terminated all movement down ensuring that 1810 is the medium-term stop for longs at this time. Indeed, one expects a price jump (gap up) on week open, so strong was the impetus seen at Friday close (e.g. H4 recovery rate). Of course in terms of your analysis, the real question is how far will a resumed rally go. The simple answer may be that only 1921 stands between Gold and 2022 at this point. If the new rally falters at that level then clearly your analysis would become truly prophetic.

The Crow (-_-)
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