Gold Confirms Bottom After Pin Bar Buying | Aug 8th

Spot Gold – Bottom Confirmed as Prices Surge After Pin Bar Bottom
For over a month now we’ve been suggesting Gold has been forming a complex bottom, which you can read here, here and here. After severe drops like this PM experienced, bottoms usually take time and form complex price action structures – usually with several new HL’s (higher lows) and a second attempt to take out the prior lows (which fails).

Before today, over the prior 12 days gold sold off 8 of them, dropping over $75 in the process. However yesterday it formed a pin bar off a key level and has since surged over $26 higher taking out the daily 20ema and virtually the last 3 days of selling. This to me confirms a long term bottom is in place.

It is possible the PM could form another LL (lower low), but at this point, any pullbacks towards 1296-1269 (as suggested before) are buying opportunities. Those not already long can look for intraday pullbacks into 1300-1306, or deeper pullbacks towards 1289-93 to get long. Upside targets remain 1339 and a much higher upside target of 1418.

daily pin bar gold reversal bottom price action 2ndskiesforex

Make sure to check out my latest article onĀ How To Deal With Counter Trend Signals To Our Trades.

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