Wednesday, June 8, 2011

Gold (GC) Divergence 6/8

Here we have the 4 hour chart of gold and can see lots of divergence forming (shown in purple) on the recent rebound from its sell off in early May. After its most recent peak it seems to have sold off right into the top part of the retracement channel of the May sell off (@1532). I think if we solidly break below this level, we can see gold get back to the very low 1500s in the near future and for now stay in this area. I've already entered this position feeling its low risk and high reward at this point.

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