GOLD Daily Chart Overbot Negative Divergence M Top CME Margin Raises

CME raises gold margin requirements and the price move off the top days ago was the result. Using the silver spank down in April as an example, additional raises in margin requirements should be on tap, spanking down price as they occur.

On a technical basis, studying the red circles, note how the RSI, MACD and histogram all placed higher highs, thus, they want to see price come back up for a matching or higher high before rolling over. And that is exactly what is currently happening. The blue circle will target the price top for gold that should be a significant top for gold perhaps not seen again for very long time. Once the blue circle is achieved, that gives a higher high in price over the last couple weeks which corresponds to negative divergence across the board for all indicators (blue lines). She's going to go down.

Note the volume participation over the last two weeks. High volume as the momo parabolic shot skyward like a rocket, but now, as price ventures back up to satisfy the red circles, the volume is half. The institutions and hedgies are bailing while the hype remains strong for gold.  Joe Sucka rolls in at this stage and serves as the bag holder. Projection is down from here as the top is placed in the blue circle, call it anywhere between 1800-1830. This M Top is significant and this chart is nothing you want to own long. Projection is for a spankdown as soon as the blue circle is achieved. Alternate projection is a collapse of price at any time if CME announces the next raise in gold margin requirements. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.

Note Added 9:25 AM: Keystone's 80-20 rule states that typically when a ticker crosses the 80 level it moves on to the 20 level, thus, when gold closed above 1780, that opened the door to the 1820's. We are there now with the latest print 1822. This is going to be an interesting day for gold.