Gold Daily Primed for A Move Lower with Break of Consolidation

4 Mei

Gold, Daily - Indicators with Fibs Overlay: Let's assume that the long extension will fail as a result of the Daily short that has traded. This target is 2260.15 . . . we have intraday fibs that take us to nearly that level. We have been ranging just above support for the past 4 days, which does lead me to think that eventually the trend may be down on the daily . . . but, we just need to break it an hold at levels down below 2292. I am looking for this support to break as the Bollinger Band turns down and the price action takes us below the Bollinger Bands on the daily time frame for the first time in a couple of months. So, I would wanto be a seller above 2300 . . . Our swings of 2340 and 2326 are doing well. . . I don't think the are in any danger at this time. However, any short under 2324 could be subject to a run up and a take out . . . If we do get a move back to that level, I would be looking to put more shorts on . . . One other note: Another down day or two and this slow stochastics could become "embedded" and locked-in on the downside . . . that would help us break out of the consolidation and move swiftly towards the downside.