Hope your well. I managed to get my own thinking aloud blog going ( link above ). There was talk about shorting gold over the last few days amongst some traders. My own analysis tells me not to consider shorting until your target is met.

The target is based on rudimentary analysis based on the basics of a classical triangle formation, given that the longer time-frame of gold is in an up-trend. Not all targets are achieved, but the placing of targets gives us structure and goals, as well as a bias in how to trade.

It is important to note the developing and lengthy positive momentum build as price formed the consolidation pattern, and that the current swing, and thus the current momentum reading, is not yet complete. I would expect that as the price continued to rise (if it did) then the momentum indicator – which is nothing more than the difference between a 3 and 10 exponential moving average – to rise. We’re ultimately comparing distance between these moving averages in an effort to understand momentum characteristics a little better.

And, ultimately, it’s still all odds and probabilities.

Is that typical after a breakout or prior to reaching the target?

Doesn’t this indicate some caution is gold reaching the $1000 target?