Reason Why the Gold Price CollapsedCommodities / Gold and Silver 2010 Oct 20, 2010 - 09:53 AM GMT
Following the gold market as we do here at MarketClub, it was amazing that nobody, and I mean nobody, was bearish on this market. This always creates a problem as the markets tend to reverse when everyone is on one side and there's no one else left to buy.
Another tip-off was on Fox Business News and also on CNBC indicating that gold was going to hit $1400 almost immediately. Well after Tuesday, we know what was to happen to the price of gold. If gold were so strong, should it really have gone down almost $70 in 4 days?
This is where technical analysis and Japanese candlestick charts really shine in my opinion. What happened in gold was a classic candlestick formation that any trader, whether they trade gold or other markets, should be aware of.
In this short video, I illustrate how this formation occurred and how it was confirmed the next day - and I don't mean on Tuesday.
I also have a free candlestick book that I'm making available along with this video.
As always there is no need for registration and the video is with our compliments. Please feel free to leave us a note on this or other videos in the comments section of the blog.
All the best,
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