- Class A bearish divergence in weekly MACD and RSI
- Indicators on daily charts confirm internal weakness and downward price trend
- MACD(50,200,1) slope is negative
- Note the bearish divergence
- momentum indicators are confirming downtrend
- volume indicators are also bearish
- NOTE: The ADX line is moving up and has crossed over the lower line
- this usually indicates a strong trend move is about to start
It appears that the long awaited Gold correction has begun which coincides with a wave 5 completion. The retracement target is into the wave 4 formation, which aligns quite nicely with the Fibonacci retracement levels - see the weekly chart above.
Recommended Strategy: wait for a bullish divergence on the weekly chart before going long.