The gold stocks gapped lower yesterday morning, following through to the downside on what appears at the moment to be a Wave 5 Bearish Wolfe Wave Fakeout Breakout and a Bearish Evening Star pattern. The low of the session was 315.11 which sets up the second data point, along with the March 24 low of 314.06, for a mini-H&S Top, best seen in an hourly chart.
GG gapped down from 33.88 to 32.88. I entered orders to short it at 33.24 and 33.44, hoping to get in on a partial gap fill. I got more than I bargained for. GG rallied all the way up to fill the 34.53 gap in the intraday chart. The high on the session was 32.52, an exact gap fill, and the rally ended on a H&S Top.
That little H&S Top in the 10-Minute chart could be a fractal (repeating pattern) of a possible H&S Top in the Hourly Chart. Because of that and the fact that GG might rally some more to complete the Right Shoulder, I covered my shorts near the afternoon low and will consider re-entering short today with a better entry, or on a break of the neckline.
Gain on the trade: $1,200
2 comments:
you think it's a good idea to short the HUI at this point?
Good Morning, Kevin,
It probably is a better idea to wait for the 314-315 neckline of the putative H&S Top to break, if it's going to do that, but I don't make recommendations. I've been shorting GG, playing it for a Right Shoulder, with mixed success ;)
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