Gold Bulls in Denial

Now that everyone’s in shock over gold (and miners) going lower, they’re telling us ‘the bull market’s still intact’.

If you completely missed the bull trap, why should your analysis be viable now?

Anything can happen that’s for sure.  The futures markets open in a few hours and gold could go into a rally.  It could … but will it?

When a trap like GLD is over three-months in the making, those in charge, the bears, will attempt to use it to its fullest extent. 

Those on the wrong end, are the ones providing downside fuel.

The bears set the trap and give it a push.  Now the bulls are selling their positions driving the market lower.

Effective traps typically go farther and last longer than anyone expects.  The most likely target for the current move is shown as the blue oval.

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

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