Not exactly a textbook chart in gold

The gold chart is a frustrating one in some ways but makes perfect sense in others.

On Friday I was focused on the potential for a three-candle reversal in gold. That’s normally a powerful signal especially after the washout to $1131 in Asian trading.

It was confirmed by the close above the highs of $1175 late last week.

gold reversal

Three candle reversal

But today gold has given up almost all the gains and is down $27 to $1151.

The lines to have been focused on, in hindsight, were the 38.2% retracement of the swoon and the early Oct low. Those held and were the signal to sell.

Gold technical analysis

Gold technical analysis

You can’t get every trade right (I took profits on a short on Friday and regret it) but you can always learn something and hope to get it right next time.