Gold Analysis: I have a couple of trendlines for g...
# active-trading
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Gold Analysis: I have a couple of trendlines for gold that are showing some correlation now, and today we have a similar shooting star like we had in April, it is a little weaker but still valid. The two blue lines are pivot highs going back to 2011 and 2020 connecting to the pivot high from this April. Because of the trendlines going back many years and the price action around those levels, combined with a time count and narrow body bar for today, this has the characteristics of a lower probability sleeper hold, because its at all time highs and trends lines are not as strong as real previous price action. I am not taking any action on this at the moment other than i do personally hold gold and silver, but if we see a confirmation below the lows of the shooting star, especially if it closes below the trendline then i may consider a quick short only back down to the scene of the crime where it broke through resistance around 3500-3550. At that point if it bounces off the lower trendline and moves up with volume i might consider a buy at that level. I still think everything is likely to go lower for a brief period 10-20%, but with central banks buying gold at a historic rate gold might actually hold its ground in a downturn this time around. There is not a lot of risk vs reward in anything i see right now but i thought some people might like an opinion on gold.