Gold broke down from its rectangle formation. I indicated here it looked like gold would retest the $1240 low. The trade fit my plan. I hesitated to short gold here and missed out on big profits. From my experience, it looked like a bear trap.
I am going to step out on a ledge here and call a bottom that can be traded.
Far to many traders have became bearish. The masses love to sell into the panic. Being profitable usually means being in the minority.
Momentum indicators are showing a bounce is due. I think the bottom is close.
I went long at 1248.80.