break of 50dma and downtrend, page-58

Just so you perpetual bugs know where I am coming from gold has currently rejected the 50dma and is now testing $1600.
There is a Head and Shoulders on the 1hr chart that has broken the neckline and the target is $1582.
I said last Friday that the daily was turning down and then we got the large spike, however little follow through.

The reason I have remained bearish and very cautious this week was because the daily cycle was due to top Mon/Tues.
I thought there was a chance the cycle may have inverted as the decline into Tuesday could have been a shortened down cycle, however that now appears to NOT be the case and Friday was the cycle high. Daily has a tolerance of +/-3 days.

If gold sells off here the next cycle low is now not due until later this month and we have long term cycle lows converging as well.

This could be the momentum that drives gold under $1500.


Be prepared.