Gold - finally the correction

Although I am very bullish, I have been expecting a correction for gold.

Finally, the correction came today after a dramatic action by the Swiss National Bank to foolishly peg its currency to the Euro. Officially the currency war has began.

Such action should benefit gold but it went down. The main reason is SNB also sell gold at the same time. Central banks are controlling the debasement of currency and the rise in gold.

So when do I add to my gold holding? I have already 1 position size of gold in my portfolio. I have liquidate the rest waiting a correction accumulate again since I am very bullish on the fundamentals.

The correction should continue for a few more days. Some more triggers may push gold down.

It is now in a small consolidation. If it breaks above the all time high, it will be bullish. If it breaks below 1780, it can go down hard to 1700 or even 1600. Even if it moves to 1450 which I expect to be the maximum, I will load up the truck. Probability is low. All the arguments that gold is in a bubble sound silly. Gold can correct violently but it is no where near a bubble. It will be there some day but not now.

Normally, I do not try to catch a falling knife especially for gold. It can fall hard before recovering and accelerate upwards to all time high.I will wait for some signs of bottom. It could be a quick capitulation down and then recover, a candlestick reversal, or another other short term bottoming patterns.

Probability is that it will go down short term unless European crisis really explodes - Greece default, Italy loses control etc.  This is one time that fundamentals will trump technical. In all my technical analysis, gold has to come down.  But any fundamental event may send it to the moon!