Gold prices are weak as Europe and Asia are getting hit.
Gold prices are not headed up. There is no bid catching and sellers are in control. The critical price support is coming up at 1132 to 1143. If sellers push below here we could crack the $1100 psychological support.
All the gold bugs are scratching there head saying the roof is falling, the roof is falling, but the truth is the naked shorts in futures and the margin calls that will be hitting the market and paid in gold will be huge.
The extension of the Head and shoulders which I have posted many times before is to 1050. If the margin calls are enforced in China, we could see large amounts of gold entering the market.
China Stock Market trading plan.
Chinese Stocks are cliff diving. China, as mentioned yesterday is the one on the side of the cliff. The Shanghai has stopped trading on $2.6 TRILLION of Stock. They aren’t trading on the market place and the rest have brought the market down about 9%.
Chinese stock market in Shanghai has moved in to Bear market territory with a break of the 200 moving average. Today the market is off almost 9%.
The next chart is a 1 minute chart and you can see that it has fallen 10% in the last few hours. Remember the market is still up for the year. The biggest consideration is if the government will let it slide, or step in and letting this roll over to margin call against property values. The Chinese market foreshadowed the 2008 US Market crash also. Trading Plan is no overnight holding and careful with your shorting. Chinese government can halt trading, put in their own plunge team, or just declare a price. Very Volatile, very risky. This will effect $25 billion in US purchases by China.
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