Hello friends!
We’re back with another timely update — this time, it’s all about Gold ETF, and things are playing out just as we projected in our last analysis on April 22nd.
🎥 Watch our full chart breakdown on YouTube:
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📘 Visit our blog for more insights and setups:
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⚠️ April 22nd Setup: Bearish Engulfing Was the Warning
Last week, we highlighted a bearish engulfing pattern following a doji candle — a clear technical red flag. We noted:
- The setup was bearish.
- Gold ETF might either move sideways or break lower.
- Downside targets were set around $275–280.
Guess what? The pattern played out perfectly. For the past 4 sessions, gold moved sideways — and today (May 1st), it finally broke lower with a -2% drop and a strong bearish candle.
📉 Volume Speaks Louder Than Gold
Today’s downside move wasn’t just about price — it came with heavy selling volume, the highest in over a week. That’s a clear sign of distribution, not just a random dip.
Even if you check Gold Futures, you’ll see a similar story unfolding.
💡 If you took the short trade earlier based on our April 22nd post, you’re sitting on a solid setup. Congrats!
🧭 What’s Next? Levels to Watch
In the short term, we expect:
- ✅ Support zone at $275–280.
- 🔄 Possible consolidation or pause around those levels.
In the longer term, things could get rougher if the macro backdrop remains stable (i.e., no global panic). Historically, Gold corrections during economic optimism tend to stretch:
- 📉 Worst-case correction range: 25–35% over 1–3 years.
- 📊 Current correction: Potential for 13–14% drop from the top — already visible on charts.
🛑 For Long-Term Gold Holders…
If you’re holding gold ETFs for the long term, it’s time to reassess:
- ❌ Don’t ignore the signals.
- 🛡️ Those who exited based on our earlier note have already protected their profits.
- 🔁 A strategic trim here can reduce risk if further downside unfolds.
🌎 Will Anything Save Gold?
The only near-term bullish trigger would be a major global crisis or economic instability. Without that, gold is unlikely to see significant upside.
So, if markets stay stable and the economy grows — gold may lose its shine in the medium term.
💬 Final Thoughts
The technicals don’t lie — and right now, they’re pointing downward. Whether you’re a trader or a long-term investor, this is the time to be smart, not hopeful.
🔗 Watch our gold ETF update on YouTube
🔗 Read more insights at AppleTree360.com
Stay alert. Stay disciplined.
Happy trading
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