Entrapment Markets


#1 Gold chart is looking deceptively bullish whilst it is setting up a bull trap. To recognize this, check out this Crude Oil chart.
Precisely during the late Sept rallies and as price approached the peak;Price activity manufactured a Top . Crude Oil was getting overbought at RSI readings of 70+ as price approached the peak whilst printing the black zones. In addition negative divergence was being produced.
This wave (c) from $64 to 76 was showing all the signs of a top in the making which we previously highlighted at that point in time.

Currently Gold is exhibiting all these same clues as was discerned in Crude Oil.Our earlier prompts to anticipate a rebound failure is now more pronounced. Lets recap this market’s messages:
Gold’s price activity is also setting up a bull trap, as prices
approach its upcoming Peak.But Gold vs Crude Oil is already way ahead in its overbought zone @ RSI readings of 70+.
It has dipped in Overbought readings even as prices went higher to $1300 ! This tells us that its negative divergence is, in comparison, more deeply overbought as price is approaching this peak. Its black zone is already in decline.

Inference : There is no doubt that its decline will be as devastating as that by Crude Oil’s subsequent waterfall crash. That being said there is now my heightened concern that when she cracks the drop will have no respite until the initial target of $1240 is met. You can see this is very possible, (refer to chart),
as there is No visible support until at the $1240 level.
We await the decision of the only entity that can discern this
prospect – The Market. Therefore it is Imperative that we listen to the market when she is talking to us.Good Luck