On March 8, I posted a blog about the potential buy signal in the April Gold. Recently, a reader asked about the signal and wanted to know if it is still valid. I thought this was a good topic for an updated post.
The Gold confirmation buy signal was never confirmed. The market had formed a potential bullish reaction swing at the ascending median line. The median line is a target objective that is reached a high percentage of the time and works as a reversal line. However, there are times when the market can form a bullish pattern and build enough energy to break through and close above the line with good separation. When this happens, the market is signaling a possible move to the upper parallel line. In this example, I was waiting for that breakout to occur and catch the new bullish leg, but the confirmation never occurred. Instead, the market could not overcome the resistance at the ascending median line, but instead the market formed a bearish TR (trend reversal) pattern sequence that signalled a trend shift. The new pattern is projecting more downside pressure into the next reversal swing date due on March 29. If you are not familair with the TR pattern sequence and the time and price projections you can learn move about them in the book “Unlocking Wealth, Secret to Market Timing” on the Traders Network website at www.tradersnetwork.com