Gold broke the major downward sloping trendline in the "Descending Triangle" pattern, see right hand side below. This does not turn gold from "Bearish to Bullish" in the weekly timeframe in my opinion. To me Gold is now "Neutral" on the weekly.
As long as gold stays above $1,650, I am favoring day-trades only to the long side on the smaller degree timeframes. Any bearish patterns that develop on a 30 min or 5 min chart will be ignored other than to look for failure. I have no issues being flat for the time being as price means nothing to me.
I have mentioned many times that I am eager to put on an intermediate to long term trade in gold and that I would not consider putting on one until the descending triangle is no longer in play, but that does not mean that I would put on a position in that instant.
The next quality consolidation pattern that develops on the daily timeframe that has a breakout to the upside may set the tone for the next longer term trend. Likewise a breakdown from the next consolidation pattern on the daily chart may be a rude awakening to those who are piling in and looking to hold on. I want to avoid this, because I do NOT believe I have strong enough probabilities yet. A loss would not be welcomed here by me. The larger the degree timeframe the wider the stop must be.
I have gotten many emails since announcing a new service, and I will be sending out another group email with another update in the next few days.
I am away from my desk, so I apologize for the brief post and the different chart layouts for the time being.
(Click on chart to expand)
My last post on gold can be found here: http://scottpluschau.blogspot.com/2012/08/weekend-update-gold_19.html
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