I love your explanations. Thanks Randy!

Beautiful. Traders also remember…Cash is a position too :) Dont have to trade every day ! GLTA

1492 on /GC was about as well-defined as a support level gets, with numerous reactions/bounces off that level since it was first taken out in early Aug. /GC had a chance to recover back above it following the slight break earlier today & certainly tried (with a brief snapback above earlier) but failed to hold above it so as soon as /GC fell below that earlier low today, a massive cluster of stops began to trigger along with shorts smelling blood in the water & piling in.. hence the impulsive drop (and earlier suggested to use a stop just below 1492 earlier today, if going long for a bounce trade at that time).

After than impulsive stop-clearing washout move, /GC is now oversold on the very near-term time frames & although the daily charts still don’t look so hot, /GC is likely to bounce on or around the 1468.25ish support if the stock indices (SPY, QQQ, /ES and/or /NQ) pullback off this tag of those support levels as I suspect they will.

That’s all near-term, active trading stuff. Too early to say with a high degree of confidence that now is a good time to buy gold for the next swing or trend trade leg higher just as it is too early to say whether the stock market is likely to either break down below those key support levels that were tested on Friday or will go on to break out above those 60-minute wedges soon. As such, less active swing traders might opt to keep things light at this time & wait for the next objective long or short entry on the stock indexes as well as the precious metals.