ForeCastle

"Gold prices dropped from $1227 on Friday to $1202 per ounce on Monday which was slightly above the top end of the $1190 price zone. Could it be possible Monday’s price action was the secondary reaction we were looking for? Possibly, but be mindful that it may still be coming. Therefore, the door is still open for a rejection between current levels and $1291 which may lead to a sell off towards $1167-$1190 per ounce."

"The bottom line is that the better risk to reward ratio opportunity for bulls is at lower levels and if price begins to take off higher, the secondary wave count suggests an eventual revisit back to near current levels. Therefore, chasing prices higher is the trade that produces a worse reward based on the risk and that we need to stay away from such chasing. It is preferred to buy the dip near $1167-$1190 per ounce."


more...