Gold Key Reversal Day 8/10/2020

Gold at the daily view.

Gold experienced a key reversal day back on 8/7/2020. I was wondering when it would be. It should not be surprising the gold is experiencing a pullback.

For the past 3 weeks, gold was among the most overcrowded trades at the long side. A pullback is actually natural after a parabolic move like that.

Don't get me wrong. I am very bullish on gold and silver. I'm looking at it from a bigger view.

The pullback will likely be shake out operation. It's the punish those who FOMOed or chased it. New traders only think that assets can only go parabolic (up). That's how you can blow up an account.

Precious metals is a different beast than equities. Gold and silver are more long hull trades which rewards patience and precision. Gold and silver will need a pullback then a period of consolidation. The longer it consolidates, the bigger the move up will be. At the same time, the longer gold and silver consolidates, the more impatient traders quit and drop out.

I'm looking to see the price action of this pullback. I would gladly go long at lower levels then "buy right, sit tight."