Loading ...Gold Nearing Breakout Into Unprecedented Bullmarket And The Latest Cots Won’t Stop It…
We have learnt from a mistake made early in 2016 when we called the end to the strong rally in progress then off the lows of the giant complex Head-and-Shoulders pattern too early due to high Commercial short and Large Sec long positions.
*************************************************************************
A key point to make at this juncture is that the latest COTs for gold looked bearish because there was an explosion in Commercial short and Large Spec long positions to an at least 1-year peak, which many are taking to mean that gold will fail again at the big resistance at the upper boundary of its huge base pattern. But what may instead happen this time is that gold breaks out anyway, perhaps after backing off a little first, and rockets higher, with positions ballooning to well off the scale levels, which would hardly be surprising since if gold breaks out above $1400 a huge number of investors and traders will come down off the fence and pile in. When they have reached wild extremes on a spike, then we will see a correction or at least a consolidation before the next upwave starts. We have learnt from a mistake made early in 2016 when we called the end to the strong rally in progress then off the lows of the giant complex Head-and-Shoulders pattern too early due to high Commercial short and Large Sec long positions.
