The June contract in Gold (GCM12) failed to extend the bullish uptrend 11 trading days ago on the Quarterly Profile. No candle body close above the midpoint between MR3 and MR4. This generated a sell signal at 1770.00 as the Zone-Trader Philosophy suggest that GCM12 would revert back to the Zone-Trader Pivot at 1636.80.
GCM12 has now hit the Zone-Trader Pivot at 1636.80 and has initially found support. GCM12 will have to break below the Zone-Trader Pivot on the Quarterly Profile in order to continue down-trending. The bulls are in control of the market on the Quarter as the time filter held above the top of the PZ on Feb. 6. So we should expect buyers to come into the market and attempt to maintain control of the market, now that the price is back within the Persistence Zone defined by 2 orange lines.
The bottom of the PZ is at 1604.50, and will be a major support if price should reach it. Currently with reversion to the Zone-Trader Pivot after the failed bullish trend extension, GCM12 is now balanced and will have to attempt to make another breakout. The Zone-Trader Pivot on the Quarterly at 1636.80 is currently holding support, look for buy signals on medium term time frames 30 minute and 60 minute charts as long as they are generated above that 1636.80 price level. If GCM12 falls below this price level i would stay on short side until it reaches 1604.50 to 1576.40 prce area.
GCM12 has now hit the Zone-Trader Pivot at 1636.80 and has initially found support. GCM12 will have to break below the Zone-Trader Pivot on the Quarterly Profile in order to continue down-trending. The bulls are in control of the market on the Quarter as the time filter held above the top of the PZ on Feb. 6. So we should expect buyers to come into the market and attempt to maintain control of the market, now that the price is back within the Persistence Zone defined by 2 orange lines.
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