GOLD XAU (before you get too bearish)These are the yearly pivots and CPR on gold. levels plotted at the start of the year. For over 2 decades nearly gold has generally hit its new yearly pivot in Q1 (if not then... at some point anyway) It seems as though since it is testing the new yearly pivot from above. that falls in line with some of the greatest run ups gold has ever had. Just food for thought
Yearlypivots
Despite bullish BTC move. BTC to see the 14-15 area stillshowing on this chart are both the last 6 years (top) and months (on bottom). I do this to illustrate the algo phenomenon called the magnetic trade. This Occurs also in daily and weekly levels.
What does magnetic trade mean? Essentially anytime and asset opens a time frame that is far from its new pivot. That point becomes and algo driven magnet to pull price back to it. I have calculated the next yearly pivot. Currently comes in around 14k area at the moment. if you observe the last 6 years of price action you will see this has been and undeniable event traspiring on previous yearly opens to both down and upside.
I am not saying I am bearish. I recently posted a monthly trade from the 17000 area for the monthly H3 which is coming in around 21500 and said I expect that may very well happen first. and we may have a bull run after.....
However I definitely expect the yearly retrace to go as history has shown
Third retest of yearly pivot S1 and weekly PPI entered short right when price hit yearly pivot S1 (and weekly main pivot - confluence!). Stop above yearly pivot S1. Tight. Chaikin AD volume line is in a fine long term bearish downtrend on daily and weekly. Because of that, I dont think the trend will change. What a profitable week we had! Have a nice weekend guys!
PS Always watch for action at yearly and monthly pivot levels. Price respects them a lot.