AEM Bounce

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.

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Zooming into the hourly chart reveals some interesting price activity.

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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.

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