Bullion banks are trying to break gold down again - HOLD

17 de mai. de 2019

Bullion banks are trying to break gold down again - Holding the channel at $1279 could see a retest of $1309 next week.

Weekly Head and Shoulders bottom forming on gold and holding below Neckline "coiling" (building energy). Weekly Bollinger Band width at 20 year low suggests large move coming. Weekly RSI above 50 suggests the move is up.

17 de mai. de 2019

Nota

Every time the banks hit a peak in their net short position, Gold tends to fall. Based on prior peak short positions, 87k is more than sufficient for a peak in Gold.

At the same time, the Money Managers or “Funds” are likely adding to their net long position, which was still relatively small on May 7 at just 9k.

This does not necessarily mean that Gold peaks tomorrow. In fact, I wouldn’t be surprised if it continued a little higher to allow Funds to add more longs and Banks more shorts before the latter smash the price lower again. We’ve seen this time and again from the Bullion Banks. However, this time it may be for a more positive reason.

The Banks want to be long when the next rally in Gold takes place, as it plans to be a massive one to new highs, imho. At the same time, they will want to squeeze out as many weak longs as possible before that rally occurs. They can do both at the same time by driving the price down, and then when it takes on a momentum of its own to the downside, start taking profits on their shorts and adding long positions while the Funds add shorts. When the Banks are sufficiently long, then Gold takes off.