Ecc’ 3:1 – A time for everything. There is a time for everything, and a season for every activity under the heavens…There is a time to buy and a time to sell. Nothing goes up or down in a straight line.
The fear of strong job report is sending the gold, silver lower and up the USD this morning (Syd Time).
There is still a possibility for us to see Gold lower hitting 1040-1050 if the job report is very strong. Equally, we may see 1072-1074 to be tested before rebound.
Why Gold is about to rebound at any time this week or Monday next week (the latest)
1. Short Term Cycle low is probably already in place.
2. Excessive negative sentiments (with overloaded shorts on one side of the market) in the press (read my blog posted on my website www.johnyii.com a few days ago). Even gold-bugs are expecting more downside from here for a FINAL LOW.
3. Technically, it is oversold though not deeply oversold.
4. If my expectation is right, there will be reaction rally to the upside this week (with a target 1140-1150) to 'flush out' excessive shorts. Once this excessive shorts relieved, we may see a new low XXX by XXX. I have sent out alerts to members when to Go Long and Sell Short?