Hi Saci
Had another closer look on the daily- I drew in the trendline from where the price drop started-
which technically I believe that is where it needs to start- (gold is really interesting to follow the whole
market was watching if it would break the trendline that started back in 2011 interesting stuff
![Smile](styles/default/xenforo/clear.png)
)
It did not break when everyone expected - needless to say- but it is slowly climbing now which is probably better- you should watch- I find it gives me a live challenge- of looking at the macro what I think will happen and watching the progress.
http://www.livecharts.co.uk/MarketCharts/gold.php- is not bad gives a live window that can be adjusted to any timeframe.
It is debatable where the line should actually begin on SGH- however it does not really make a huge difference - to where we are at right now-So it can be placed higher up but to me gives the same overall.
Your correct in thinking it is making higher lows at this point - - however also making lower highs-
The thing that bothers me a lot with charting this now is that all the trading action is fairly controlled imo.
And can remain range bound now for a very long time with the uncertainty...Can also fall off a cliff with out warning.
I had a look at the short graph and my they have indeed dropped- but the price has not risen- this would indicate to me that they are closing - rather than covering?
I don't short however logic would tell you that if the SP has not risen with the amount of shorts dropping so I assume that as usual they know more and are possibly walking away?- which brings me to my final problem- we have indeed reached a decision point here.
That is the scary part of someone screeching short rally when there is a big drop in shorts and NO rally--ummm
Now at any of these chart decision points unless the FA is in the bag bullish I would not be holding- Looking at the likelyhood of finding a catalyst that can propell this to BO- well there is not any- more still on the negative - looming DFE- more lawsuits big payments coming up- long time before there is any positive news re positive income- It could break down completely soon - that is the concern.
At best sideways... imo
Best of luck not an easy situation.
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