In my last public posting at the end of February, I discussed how gold was setting up for correction in March, with $890 a very important fractal target for such a pull-back.
Gold ended up bouncing off the $890 level three times, with the last one a highly energetic "slingshot" move off the Fed. I call these "slingshot" moves when a market is first attracted down to a specific energy level, and then just as quickly repelled away.
Although few people are aware of it, such "attractor/repeller" energy levels are a defining characteristic of every financial market, and it's possible to know with great precision where these important levels are ahead of time -- as we just saw with $890 on gold, and how before that $990 on the upside.
Even though they are very difficult to survive, such an energetic drop-and-rebound is actually an ideal way to launch a strong new trend. This energy surge off the Fed is precisely the sort of event that can dominate and influence a market fractal pattern over the upcoming 4-month cycle.
So this is a perfect time to examine the big monthly pattern, which has reached a particularly favorable configuration. The monthly fractal dimension is very high after a swift test of the last major breakout level and an equally energetic rebound -- again, a very similar pattern to the slingshot move we just saw on the daily chart off $890, except on the monthly pattern this was a huge move down to $680, and then right back up.
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