Today we had a strong selloff, I am sharing this idea to give you some insight on why this selloff may have occurred. I have some technical reasons why this selloff has occurred today and I will be sharing that analysis with you (Fundamentals aside).
Reasons For Todays Selloff:
1) Price has reached Strong Structure Resistance and a pull back is to be expected at these levels.
2) Also, as you can see from the chart above, we had a completion of a Weekly Butterfly Pattern at that strong level of resistance.
3) Price looks to be retesting the previous highs resistance (Blue Line on chart) along with the 50 period moving average.
4) We had a Daily Close outside of the Bollinger Bands (Shown on Chart below). Those of you who follow my ideas know that I have a strategy designed around this concept.
Of course there are other reasons for the selloff, however these are some of the reasons that I am seeing. Feel free to give your input and analysis as to why you think this selloff has occurred (Fundamentals aside). This Selloff is nothing to be worried about yet and is normal. Gold and Silver may have a little more downside to come over the next couple days but I do have a Long bias and think Gold/Silver will continue higher over the months ahead.. Hope this helps, thanks traders!