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FX Price Action – Gold Forms Inside Bar on Corrective Pullback | Apr. 23rd
Gold – Corrective Pullback Forms Inside Bar
After the largest sell-off in 30+ years, Gold has slowly started to recover, likely from short covering/profit taking due to such a massive drop. Today the precious metal formed and inside bar on the daily chart, its first bear close in 6. I’m definitely not convinced the selling is over, but the bulls haven’t waged an impressive comeback.
My read is the PM will climb a little more, perhaps around to $1454, or $1478 before it will find sellers again. A break below today’s inside bar and the A bar (bar before the inside bar) would suggest sellers have retaken control and will likely gun for $1400 and $1384.
NOTE: Today formed a lot of intra-day pin bar signals on the JPY, USD and other pairs. This was due to a “flash crash” when
skynet the algos completely pulled liquidity out of the market, reacting to a tweet via the hacked AP acct talking about explosions at the White House. The S&P dropped 20+pts in less than 3 minutes on 260K contracts, but then recovered quickly. Needless to say, almost nothing was spared when Johnny 5 went haywire.
These intra-day pin bars have to be discounted completely, because they are the result of an “artificial” price action environment. The rise has nothing nothing to do with people on the sidelines rushing back in, but moreso the algos pulling the liquidity, then bidding it back up. So don’t take the 4hr/1hr intra-day pin bars at face value as that would be misunderstanding how liquidity and price action work under these scenarios.
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