While the major indices are pulling back a little bit, we're noticing some big intraday reversals in gold, silver and oil. All went from down big in pre-market to closing with very nice gains! We're talking 4% to +6% gains. Is this price action pointing towards the possibility that we've seen a short-term bottom in these commodities? Or is it as they say: the sharpest rallies are often seen in bear markets?
It's not the first time that we've seen big reversal candles with good volume, only to see price make new lows only weeks later. Maybe waiting for a higher low isn't such a bad idea. Also because of the huge volatility we are experiencing right now. It's difficult to find a good entry point without taking a big risk (stoploss too far away from entry).
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