Gold Gone Wild with High Volatility Reversals

Aug 12, 2016: 2:02 PM CST

Gold (@GC) picked up volatility with large gaps and intraday strong reversals.

Let’s pinpoint the recent high-flying (and crashing) action and put it into the larger context.

Here’s the 15-min “gappy” chart:

In August we’ve seen Gold plunge from $1,380 to $1,340 and then half-way back again… and then back to the low.

Note the Bear Trap on August 9th, the Bull Trap on August 10th, and the big swings all this week.

All of this took place from the intraday triangle breakdown at $1,370.

With this spike in volatility and gaps, let’s put Gold’s action within a bigger context for additional clues:

August indeed saw a spike in volatility but it’s within the context of a LARGER COMPRESSION from the hourly chart.

Price is forming a wider Triangle pattern with visible multi-day reversals as seen above (red and green arrows).

The Midpoint Magnet Price is near $1,350 and the key focal point is indeed $1,340.

A firm breakdown here – a failure to bounce/rally – suggests a swing back toward the lows.

Otherwise, be on guard for another bounce reversal up away from the $1,340 pivot to continue the broader range.

Either way, monitor open positions closely and consider engaging the market with reduced position sizes in a high-volatility environment.

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Corey Rosenbloom, CMT

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1 Comment

One Response to “Gold Gone Wild with High Volatility Reversals”

  1. Arohi Says:

    When we talk about Gold, it’s something which is forever going to go with such way, so that’s why we got to be very careful with how we deal with things, as only then we will be able to achieve profits and being successful is going to be possible. I am lucky enough, I trade with OctaFX broker where I get excellent benefit which comes with low spreads from 0.1 pips to high leverage up to 1.500 plus there is also smooth trading platform which too works superbly!