The Fish Hook: Gold Might be Clear for Takeoff
MUFG: What factors may bring an end to gold’s bull run?
Housekeeping: Good Afternoon.
Contents:
The Fish Hook: We Might be Clear for Takeoff
MUFG asks What factors may bring an end to gold’s bull run?
1. The Fish Hook
Wednesday of last week was an amazing short term (with potential legs) turnaround for the market. Yes, the market was lower on that particular day.
Also, on that day we saw a buyer appear, and that buyer scooped up selling by new shorts hitting bids in the market. Thus Wednesday evolved into one of those rare turnaround days that we tactically like to call the “Fishhook“, complete with bait.
The Fishhook is a down day1 after several previous down days. The difference between the previous days and the “fishhook day” is this: The previous “down days” are instigated by longs liquidating into the Bullion Bank covering shorts (see the OI decreasing).