Not Out Of The Woods Yet

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One thing we always keep an eye on here at TRI is the fractal energy stored up in the charts. Once it is released, it tends to keep going until the energy is exhausted…

How far will it go this time?

April 15th Gold Fractal

I am not bullish or bearish right now, but the bears are definitely in control of the price action. If this fractal move completes like the last two, then the bulls are not out of the woods yet…

Good trading all.

Steve Chapman, TRI

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2 comments on Not Out Of The Woods Yet

  1. NJ
    April 15, 2013 at 8:39 PM (2 years ago)

    Wow! That’s quite some move in the BB Width for Monthly chart. Does this mean much lower prices for months ahead with short bounces? Or am I reading the BB Width chart incorrectly?
    Thanks Steve.

    • Steve Chapman
      April 15, 2013 at 8:55 PM (2 years ago)

      All it means is that the 2-year consolidation in gold and silver absorbed a lot of energy. Energy is money taking positions both long and short, but when price finally breaks in one direction the correct side adds to their positions and the wrong side is forced to cover. This continues to happen until balance is reached and the trend is exhausted – just like inhaling air into your lungs and then exhaling for as long as you can until you finally must inhale again. Price moves in the same way.