I was wrong about gold consolidating for a quick upward move to its all-time high, but prices are still correcting via time rather than volatility.
The 4-hour chart below shows the breakdown from the flag, which sent the price down another $20 in a hurry. The yellow highlighted box is the same support zone I showed when I originally suggested gold was looking droopy on the daily timeframe before flipping and winding up wrong. I’m not sure the price gets all the way down there, though. I would give bulls the benefit of the doubt still, as I expect this sideways period to lead to a move higher, regardless.
As far as stocks are concerned, more specifically the S&P, I remain bullish. Notwithstanding the suggestion for a long at the exact bottom last week, the chart is providing every reason to stay long. Price looks ready to get up to the top of the Bollinger band range. Looking at momentum, there’s plenty of fuel to propel the move.
The Bitcoin 4-hour chart has the same look to it as gold did before breaking down, but thus far HODLers are proving resilient. I would beware of a correction such as is transpiring in gold if Bitcoin were to break below the bottom of the range shown in the chart below.
Of course, like with gold, my view on Bitcoin as far as stacking it has not changed. For that reason – I would also give Bitcoin bulls the benefit of the doubt; that is, dips are to be bought, in my opinion.
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