Gold went crazy today! From starting asian trade at around US$1620/oz, then falling in a cascading manner to 1533, then back up! It hit this summer’s small tops at around 1550 with a pinbar, resumed falling, dove below and headed for a USD 13 fall which occurred and was reversed within a minute!
If you take those small tops from June, and add in the bottoms of May and July on the weekly chart, there is a channel that can be drawn, and at the bottom of that was where price bounced today.
Another thing to factor in is the spread relative the 20 week EMA, which turned negative these last few days after having had a very long vacation very far above zero. Will traders take this as an opportunity to jump in on the gold fall now and push prices higher after touching -20% since the peak?