Well look what we had this past week with respect to Gold! We watched gold make a massive rally to our long target at 2142 – how amazing is that!? – and then price immediately dropped. During this process neither the weekly or monthly produced an uptrend and the Sherlock system was very specific that one of those two things were needed in order to have long signals produced. We were watching Silver for a potential long but what took place on the gold chart lead us to conclude that a long on silver would no longer be valid.
What ended up taking place?
The daily demand zone on silver was removed and price dropped. We actually called the drop in our level 3 class which you can find here if you’re a member at the school. I made it available for everyone to watch last week.
This just goes to show you the power of the Sherlock system and its ability to determine if a market should continue higher or not based on the structures the banks create or the lack of them.
So what now? Where do we go with gold price? The ascending structure on the daily chart is breaking and the demand is being removed. So this tells us that downside is the more likely direction this week. We also have the drop in the $EURUSD that we were expecting based on the retail sentiment indicator we use in conjunction with supply/demand concepts we understand. The $EURUSD is now entering inside a weekly demand zone that we have concluded was used by the banks to accumulate a long positions so what will happen here could easily be a rally, at some point. We are still watching retail long positions and they are not maxed out on positions just yet, so we should be watching that for timing.
Moving forward I am planning to do some live session with all students on all levels on Wednesday mornings. I initially was calling them the Storyline Sessions but I want to go back to some sessions we used to do back a few years ago and revive the old Sherlock Sessions. In these sessions we will focus on the live markets, the supply/demand, the storyline of price, the CFTC data and all the evidence we gather, put it all together and come to certain conclusions to determine what the markets will do next.
I am super excited about the work we’ve been doing. The school continues to grow, our community continues to grow, traders are slowly waking up to the truths about the markets and we are making progress in education people worldwide to be able to create financial stability for themselves and their families.
Congrats everyone!
Kevin