Gold has broken down from the bear flag as I expected and printed a bearish engulfing candle on Friday. The downside looks limited from here, maybe we drop to $1200 first but I am anticipating a bounce soon. I took profits and closed out my DUST and JDST position on Friday.
Gold is in its intermediate decline so I am also open to the fact that there is no guarantee of a bounce. These declines usually end in panic and capitulation. If it keeps falling I think the best thing to do is sit on the sidelines and get prepared to go LONG. If we get the bounce then I will be looking to re-enter DUST/JDST.
I remain BEARISH on gold and the miners. Gold should fall to at least 1180 before the selling is over.
