Gold Potential to be Waterfall Crash Within Next 30-40 Trading Days

Waterfall Crash Within Next 30-40 Trading Days

Over last one and half month, gold deviated and follow by the dollar down which would be a warning sign that gold would be in trouble when the dollar began rally out. Last three weeks, when the dollar rallied gold turned back around and it turned around almost to the exact day that dallar started this rally. There is a few important support zone.

The first important support zone is from last month at $1251, and definitely that gold is going to breach that over the next week to week and a half. Fed minutes next Wednesday will probably be the trigger to put in a bottom to this decline and at least a short-term bounce.

Probably either Thursday or Friday, gold is going to pass through the support of $1251 level, and when it does, it’s going to trigger a lot of stops. It probably going to get a very fast and violent move down to that June low, It believe to be at $1179. If that occurs, either on the Fed minutes next Wednesday, or the day in front of or behind that event, it’s probably will direct to the daily cycle low. That might trigger at least a short-term bounce.The dollar is going to be done rallying though. Eventually dollar rally will have to go at least one and a half daily cycles, so it likely to be happen, and it lead fairly weak bounce off that June low, which will roll over pretty quickly, and if gold penetrates $1179—a lot more stops are going to get run.

I expect it will be a typical pre-market, middle of the night hit, where you see 200 tons of gold dumped into the market with no buyers appear to support it. They’ll penetrate that support zone and trigger all those stops, so that when traders wake up in the morning, their positions are already deeply underwater and in margin trouble. That will exacerbate the selling, and I think we’ll probably see a very quick waterfall decline, maybe even as quick as three or four days, that will take us down into that 2007 top zone which around $1030-$1050. That’s the point at which I think we have a chance to stop this bear market and begin the bubble phase of this secular bull.