Gold Follow-up: 7 February 2015, Saturday, 6.15am Singapore Time
Gold is back-testing all the multiple resistance-turned-supports.
First layer support is illustrated by the light black support lines.
Second layer of support is illustrated by the dark black support lines.
Third layer of support is illustrated by the red support lines.
Fourth layer of support is illustrated by the walnut coloured resistance-turned-support band. This is a thick and strong band of support.
Red lines and light black lines are the bases for where previous fake breakdowns were executed; these are the bases now for launch of future up-move.
All the BUY zones are as indicated on chart above.
Gold is currently supported by 4 huge layers of supports.
All 4 layers were previously resistances suppressing Gold.
They have now become the 4 layered supports that have buying pressure for launch of shorts squeeze on Gold.
The essence of this advanced technical analysis tells one important event:
In the financial markets, currently, Gold is a buy, not a sell. This is the essence.
Important Additional Side Note:
Gold broke down the multi-year light black band of support lines and then there was deliberated buying below large breakdown for large scale buying along the dark black lines of support. A lot of people using standard technical analysis are on the wrong side of the market currently. Gold then negated the breakdown, making the entire breakdown structure a false breakdown. This entire price structure is bullish in nature. The whole event is achieved and completed at the start of 2015. Based on my chart, this price structure becomes a buy-on-dip on an objective judgement.
This means USD may go into a healthy correction mode soon. This comes at the right time because financial markets have to do the reverse of what everyone anticipates since everyone has jumped in on the logic side of positions and markets like to reverse logic. It had already priced in the logic many months ago, and the timing is now ripe to apply the reverse logic, at a time when many people are on the logic boat now.
Everything is in sync: Fund Flow worldwide in the FFA decreasing longs and increasing puts, aggregated FFA has been reducing for past 5 consecutive days, it means stocks and equities are to resume to down trend and selling mode, USD is to go down in correction mode when stocks go down (new dynamics), gold and silver is to rebound in a large escape wave. The HFTs algos are already in place.
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