After reaching the $35 level on a price spike down in gold, AEM found support at that level and has mounted the expected reversion trade back towards the $45 area. Today’s price print of $43 validates the bottom pick, only slightly longer than the expected time frame called for.
Zooming into the hourly chart reveals some interesting price activity.
We note the numerous times that Fibonacci numbers were significant areas of support , resistance and congestion. As of now, the $45 area is the next likely area of supply on this particular rally phase on the hourly chart. It’s also likely that $45 will be a formidable price barrier to further advances on the daily chart as well. Given the speculative nature of the regression trade, rather than as confidence in a new bullish phase given the longer term charts, we will exit the trade for now and will re-visit if conditions change.