Gold RSI Bearish Divergence And Bulls Are Over Extended

21 במאי 2021

Good day guys! I have noticed with the Euphoria and seeing how multiple indicators are revealing gold is in an over extended market. To me, it looks like the markets are in the process of forming the head of a potential head and shoulder pattern. However, just because the signs are there, does not mean the entry is perfect. I would love to see a sharp sell off to the downside. The dollar has fallen another 2% this past week and gold has had a rally. However, I still do not believe the big move in gold is in. With the sell off in most risky assets today, even in gold being a safe haven, that informs me that people are trying to take profit. Hypothetically, a lot of traders could be in margin trouble. I am not a predictor of the markets, but I do understand how the fundamentals and technicals work. I still see that the price of gold could go even lower, before we get our massive buying opportunity into the market. Usually, when interest rates rise, the price of gold fall and vice versa; when interest rates fall, the price of gold rise. However, I believe this time with the plethora money printing, this time we could see the price of gold going much higher. My sell entry is at 1887. Be sure to leave a comment below in regards to your thoughts in regards to gold. We appreciate you for checking out our post and remember, we will see you on the other side.

Rodrick (CEO)
Third Eye Traders