Gold bulls should not worry excessively however. After such a blazing rally, it is likely that the current correction is driven by profit taking rather than a true sell-sell. The way I see it, something did change on the bullish side. At least on a 6-month basis, this year’s early rally did terminate the previous down trend since 2012. So all that has to happen in favour of bulls now is for a price support to be found, to make a higher low that will attract bullish entrants that will push price to a new high.
XAUUSD 6 monthly price action painted in pink boxes
Soh Tiong Hum is Director of TerraSeeds Market Technician Pte Ltd. TerraSeeds is a trading educator in Singapore since 2005.
Soh's Twitter account @sohtionghum was ranked #23 out of The Top 70 Twitter Accounts To Follow In 2015 by MahiFX.
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