With gold still showing weakness (despite the Dow taking hits) it’s a good strategy to trade a currency with volume. The currency heat map is showing audcad to have good volumes on the 4hrly.
Dow falls another 250pts. US mid term elections one week away. Expect a reaction.
We’ve found resistance at the 120ma on the daily chart and will sell down.
Overnight we drop another 300 on the Dow. Support is slowly but surely eroding and will create a selling bias and then panic. Gold will respon with a spike. At this point we are making our way through the 120ma on the daily.
At the moment we’re in the process of getting through the 120 on the daily chart………
Greg Weldon is bullish on gold and believes the price will double in response to a black swan. What’s a black swan? It’s a sudden unexpected shock to the financial system. ie 911, tech crash, 2008.