I talked about Gold over a month ago,
Metal Analysis Report 6-20-18 Gold Approaching Weekly and Daily Demand Zones
The weekly trend is up, but price is pulling back into a level on level (one zone on top of another zone) weekly demand zone. There are unfilled buy orders just below $1250 and $1210. Despite price liking whole numbers (in this case $1200), I anticipate getting a strong reaction to the $1250 demand level. Target 1 is $1315.
Price did react to the $1250 demand level, but was met with sellers near the $1270 level. However, price looks like it wants to bottom out at the lower demand level at $1210. Price formed a double bottom and RSI is showing bullish divergence. Price is also near the psychological level of $1200.
A record number of fund managers, surveyed by Bank of America Merrill Lynch, said they see gold as undervalued. In the survey, 17 percent of the fund managers said the precious metal may be too cheap, while more than half of the 178 fund managers said the most crowded trade was in the FAANG stocks.
If the reversal is going to happen, it must take out the sellers at $1245 first. That level is also known as a "FLIP ZONE" where previous demand is now supply.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
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by rollandthomas