Butterfly short on XAUUSD
Precious Metals Miners Lagging Behind: An Unexplained Disparity
Despite the ongoing strength in precious metals, mining stocks continue to underperform, exhibiting a divergence that lacks a clear fundamental justification. This widening disconnect is creating an increasingly stretched imbalance, suggesting that a correction may be imminent. Such persistent underperformance appears illogical and unsustainable in the long run.
From a technical perspective, I am eyeing the 2915 level for a potential short position. Notably, the Harmonic Butterfly pattern completes around 2815-2818, making it a key reaction zone.
My take-profit targets are set at 2805 and 2700.
Despite the ongoing strength in precious metals, mining stocks continue to underperform, exhibiting a divergence that lacks a clear fundamental justification. This widening disconnect is creating an increasingly stretched imbalance, suggesting that a correction may be imminent. Such persistent underperformance appears illogical and unsustainable in the long run.
From a technical perspective, I am eyeing the 2915 level for a potential short position. Notably, the Harmonic Butterfly pattern completes around 2815-2818, making it a key reaction zone.
My take-profit targets are set at 2805 and 2700.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.