Once in a Decade Bearish Reversal on Gold

Nov 10

The week closed with bearish engulfing reversal indicating a drop from very high bullish level of 27 on the Thrend Strength After Reversal Indicator Such high level is reached only for the 5th time in modern gold price history.

Previous occurrences of a drop from such a high level indicate a major correction in Gold prices:

• Drop from level 23 in May 2012 was followed by 23% correction
  
• Drop from level 25 in March 2008 was followed by 23% correction
  
• Drop from level 21 in February 2003 resulted in 9% correction
  
• Drop from level 22 in January 1994 resulted in 28% correction
  
• The biggest drop in history from level 42 occurred in July 1980 and resulted in 50% correction