Reviewing the COT Data of Net Positions are reducing for longs, shorts are increasing.
An M Pattern has formed and the neckline of the M pattern is around 1980-1985, therefore meaning fundamentally the price of gold is bearish and we should expect a downturn favouring Plan 1.
COT Data of 02/05/23 to 23/05/23
However with trading, anything can happen with the data being release tomorrow depending on the outcome.
Plan 2 could also happen breaking the bearish M pattern and the neckline may break causing Plan 1 to be voided. If price moves above 1985, then retests this area i would expect prices to reach above the 2000s by the end of tomorrow.
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However if Plan 1 happens and the US Debt ceiling vote goes through, i would expect a downside trend and a big gap down as there will be alot of sells in gold.
New COT data is released tomorrow evening, so this will provide the best indication of what institutions are doing.
An M Pattern has formed and the neckline of the M pattern is around 1980-1985, therefore meaning fundamentally the price of gold is bearish and we should expect a downturn favouring Plan 1.
COT Data of 02/05/23 to 23/05/23
However with trading, anything can happen with the data being release tomorrow depending on the outcome.
Plan 2 could also happen breaking the bearish M pattern and the neckline may break causing Plan 1 to be voided. If price moves above 1985, then retests this area i would expect prices to reach above the 2000s by the end of tomorrow.
----
However if Plan 1 happens and the US Debt ceiling vote goes through, i would expect a downside trend and a big gap down as there will be alot of sells in gold.
New COT data is released tomorrow evening, so this will provide the best indication of what institutions are doing.
Comment:
Plan 1 happened :)