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Thar's Gold in Them Thar Hills!


Can you spell "eggs-aws-chin?" Try spelling it this way: Exhaustion. There you go.


Since the "Rubber Band" setup predicted Gold's crash at May's high, price has cratered 164 dollars, more than 20%. Obviously, the shiny metal object has attracted a lot of attention. So it is surprising that in week-five of the decline, bearishness could be renewing itself so strongly as to gap down 20 dollars to new lows today, and fall 20 dollars further by noon. To gap down or decline so aggressively - let alone both - after such a protracted decline suggests that this is late-money acting, and not the most prescient.

Can you spell "eggs-aws-chin?" Try spelling it this way: Exhaustion. There you go.

Coincidentally, Gold is now back under the highs of the February-March consolidation. The consolidation itself is natural support, and the character of selling is lop-sided, so a bottom is likely to begin forming soon. It might be more accurate to refer to it as "basing" in which a choppy weeks-long range develops. A lower target remains outstanding, but its test should produce a bounce to the expected range's upper-end, which should produce a drop back to its lower-end, wash, rinse, repeat.

Our ultimate target for the crash was met and held at Friday's low, so we know that today's drop is a new downleg, and its momentum is unlikely to be reversed anytime soon. In other words, the mother-lode won't be struck this week or next, and signs that May's highs will be retested are still over the horizon. But after a shorter while of digging away at lower lows, sellers will hit a vein worthy enough for buyers to haul in the heavy equipment.
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