If you are one of those people who absolutely loath ever taking a draw down then you might want to wait a bit before jumping in with both feet.
Gold is due for a daily cycle low any time now. It is possible that the low formed last Wednesday.
I would like to see a more decisive decline to mark a cycle low though. If you are a long term "OldTurkey" type investor just ignore the daily cycles. But if you are still trying to enter positions with as minimal draw down as possible you might wait a bit and see if gold experiences a larger drop this week into a more normal daily cycle low.
looking at charts from another angle, it appears that a bearish rising wedge is near resolution. I'd say we have a drop coming. (NOT to imply that the bull market is over, far from it. Just that it looks like we may take a significant breather.
ReplyDeleteWhat target do you see in this "leg down" ?
ReplyDeleteI have no idea how to pick a "target". I know we can't get a daily cycle bottom until a swing low forms. And there is always the chance that gold still has an intermediate cycle low in front of it.
ReplyDeleteThe only way to guarantee you ride the bull is by adopting the Old Turkey strategy.