Gold Buy Vindicated - Now waiting for the bounce.
A month ago when gold hit 1130 I bought (first green triangle) as explained in chart "Gold 1130 Support". The buy was long term (years).
This is a key support line as it's directly linked to a major divergence between XAU/USD and Dollar Index. That's exactly why the insane crash happened on 20th of July when gold dropped more than 70$ in just 30 seconds. It's not a coincidence that five tonnes of gold was sold at this very support line. Normally such breakout would further drive the price down, but instead gold formed a month long range. At that moment the breakout seemed like a textbook-fake and I suspected it was only a matter of time it's back above 1130 as I argued in many charts posted since then.
On 7th of August I bought gold again long-term-years (second green triangle) as explained in chart "XAU/USD - LACK OF BEARS". Day later gold hit a two week high. Today it's a month high and rising above 1130.
What I'm waiting for now is for gold to hit 1130 again and bounce up again. After that, I believe gold will form a steady long-term upward trend on a weekly basis.
However, do not take my word for it. I encourage you to go through all my XAU/USD charts to understand the reasoning behind this, especially "Gold 1130 Support". After that you can make your own sound judgement when to buy or weather to buy at all.
I bought gold twice this year (both long-term) as you can check on my profile. My first buy was on 17th of July and second on 7th of August. I'm now waiting for it to perform. In case you want to jump on the buy-bandwagon, I would advise waiting for the bounce. If the gold bounces @ 1130, it's a good sign for buyers. I would certainly buy that if I haven't done so already.
Good luck.
This is a key support line as it's directly linked to a major divergence between XAU/USD and Dollar Index. That's exactly why the insane crash happened on 20th of July when gold dropped more than 70$ in just 30 seconds. It's not a coincidence that five tonnes of gold was sold at this very support line. Normally such breakout would further drive the price down, but instead gold formed a month long range. At that moment the breakout seemed like a textbook-fake and I suspected it was only a matter of time it's back above 1130 as I argued in many charts posted since then.
On 7th of August I bought gold again long-term-years (second green triangle) as explained in chart "XAU/USD - LACK OF BEARS". Day later gold hit a two week high. Today it's a month high and rising above 1130.
What I'm waiting for now is for gold to hit 1130 again and bounce up again. After that, I believe gold will form a steady long-term upward trend on a weekly basis.
However, do not take my word for it. I encourage you to go through all my XAU/USD charts to understand the reasoning behind this, especially "Gold 1130 Support". After that you can make your own sound judgement when to buy or weather to buy at all.
I bought gold twice this year (both long-term) as you can check on my profile. My first buy was on 17th of July and second on 7th of August. I'm now waiting for it to perform. In case you want to jump on the buy-bandwagon, I would advise waiting for the bounce. If the gold bounces @ 1130, it's a good sign for buyers. I would certainly buy that if I haven't done so already.
Good luck.
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