Gold and the GLD is clearly in a trading range supported by a positive divergence in the MACD. The question is: which way will it break out of this range? Bulls will see a completed ABC correction. Bears will see a 1, 2, [i], [ii] count. One thing is for sure: you can't have 5 waves up and 5 waves down in sequence as the move from the low of December to the January high and then the January low appears. So, if the current move completes as 5 waves up toward the January high, the bulls are right, and if the current move completes as a 3 wave move below the January high, then the bears are right. We will have to wait several days to weeks to know for sure. Patience will lead to a solid trading setup. Jumping the gun is a coin toss.
No comments:
Post a Comment