The #1 Reason Why Gold Collapsed (New Video)

Following the gold market as we do here at MarketClub, it was amazing that nobody, and I mean nobody, was bearish on this market. This always creates a problem as the markets tend to reverse when everyone is on one side and there's no one else left to buy.

Another tip-off was on Fox Business News and also on CNBC indicating that gold was going to hit $1400 almost immediately. Well after Tuesday, we know what was to happen to the price of gold. If gold were so strong, should it really have gone down almost $70 in 4 days?

This is where technical analysis and Japanese candlestick charts really shine in my opinion. What happened in gold was a classic candlestick formation that any trader, whether they trade gold or other markets, should be aware of.

In this short video, I illustrate how this formation occurred and how it was confirmed the next day - and I don't mean on Tuesday.

I also have a free candlestick book that I'm making available along with this video.

As always there is no need for registration and the video is with our compliments. Please feel free to leave us a note on this or other videos in the comments section of the blog.

All the best,
Adam Hewison
President of
Co-founder of MarketClub

23 thoughts on “The #1 Reason Why Gold Collapsed (New Video)

  1. LOL. They found silver on the moon. So I guess that's why silver is down. I'm not making this up...

  2. i believe that gold will continue to go up because i no longer believe in paper currency.

    by the way for you elliot wave people , please do yourself a favor and research elliot waves rate of return...the last time i looked they averaged negative 15 percent per year. its a joke that people believe in that as well.

    after this presidential cycle i think hard times will hit the equities markets.

  3. Adam,

    My stop loss order took me out of the GLD on Tuesday. Gold has since gone down further, and given your analysis I'll hold off buying it back.

    Silver also has taken a hit this week and has the same triangles as gold (monthly and weekly green, and daily red); could you share what your analysis of silver?

  4. Bob Prechter(elliott wave) has been calling for a down turn in gold and silver for the last three weeks. So there has been one very lonely voice out there. I cashed out of silver @21.31 bought @13.20. always remember... pigs get slaughtered.

  5. hi i want to be your club member , please tell easiest way to become your club member ,i dont do online transaction ,thanks

    1. Vikas,

      Thank you for your feedback.

      It is not a problem to become a member of MarketClub offline. We have a fully trained staff to take care of our members. I suggest you call 1-800-538-7424 and choose extension 106 and speak to Melissa. If you're calling from outside the country you can use 410-867-2100 and same extension 106.

      Thank you for your confidence in our company. We look forward to welcoming you as a new member of market club.

      All the best,

  6. 50 days over the 22 day moving average. Few markets can levitate at these levels without a correction. Now 55 days over 22 day MA. Still in need of further correction from these levels. A trip below 1300 very likely.

  7. Hi Guys,

    I'm a member and find your service invaluable for my kind of trading. Personally, I love what you do, and hope to post my own success story soon.

    I am also a member of another newletter that sends me daily trading "videos" which I find also valuable. These videos can be watched on my iPhone and since I am on the go alot, my small frustration with your service is that I can't watch "your" videos on my iPhone and have to be sitting at my computer. Most services are now including a link specifically for mobile phone users. May I please suggest that you do the same?

  8. Adam

    .... as always your videos and market views are greatly appreciated.... great lessons given for free.... THANK YOU


    .... i never read anywhere in adams commentary or video.... that gold was going to collapse.... he clearly aniticpates a pullback.... simple! ... i appreciate your comments as well, as to the potential gold still has to run!!!

  9. Adam,
    Got called away last Friday and was in cash during the dip. Got back in yesterday at bargin basement price. Gold was on a three month bull run with no consolidation. Needed the pull back to make the next run.
    Kinda knew the price was going south when the early morning Blumburg report said gold was going to 1400.

  10. Thanks Adam,
    I appreciate your review of important candle formations and Fibonacci levels.

  11. ther appears to be a negative engulfing candle on Oct 7. why have you ignored this?

  12. I dunno... the lame stream media was pretty bearish (CNBC leading the way). Minor and I mean minor pull back before it moves back up. I'm sure the Fed has something to do with the recent downturn. Just like when Bernanke said he would revert to QE if markets showed weakness and the dollar rallied. LOL. The dollar rallied... gold fell... I don't think that is a coincidence.

  13. Hi Adam,

    On Oct. 7th, there was also a bearish engulf pattern. Can you explain why that one didn't work? My thought is that patterns are not always working.


    1. mm,

      Thanks for your feedback.

      There is a big difference between the negative engulfing line that happened on October 7 and the recent one we just have witnessed. Here is the difference and it is an important one. The October 7 negative engulfing line was not confirmed the next day to the downside. When that happens it basically negates the power of the negative engulfing line. This time however, the negative engulfing line was confirmed the next day to the downside. What that means is you had to back to back red candles. You do not find that the earlier example that you pointed out.

      Thank you for bringing this to our readers attention as it clarifies exactly what I said in the video.

      All the best,

  14. "No one else left to buy". ... oh really Adam? Do china, russia & india not count?
    How bout the rest of the worlds central BANKS who btw are net buyers now
    As opposed to sellers hmmm. What about the few Sheople out of the remaining
    Billions that have woken up early to this 10 yr bull run that noOne hardly has yet
    Recognized? Yes of course it is healthy to have pullbacks in any bull market
    Especially one that has gone straight up for 3 monhs... but what happened this week
    Imho is the same thing that has been happening for 10 yrs and that is a coordinated
    GOLD CARTEL raid flooding. the market with what little metal THEY can muster along with
    Tens of thousands of PAPER contracts sold short to overwhelm the buyers...
    No one can use any kind of technical analysis in a manipulated market specially the
    Precious metal markets as they are the most important ones to the BANKSTERS in order
    To make it appear that THEIR FIAT is worth more than the worthless piece of PAPER
    It is! As always if I don't place a delete comment in here you will prove YourSelf an
    Accomplice of the CABAL once again... thx for reading

    1. Cabal,

      Thank you for your feedback.

      When I mentioned that there's no one else to buy, that meant that the overwhelming attitude/ sentiment towards gold was incredibly bullish. Professional traders often wait for moments like these when they see a weakness they move in for the kill that was the reason the market fell so dramatically in my opinion.

      Please be advised this did not change the long-term trend which continues to be bullish for gold. As you mentioned it is healthy for markets to have pullbacks and I think the pullback that were currently in is likely to either go sideways or lower for a while before the upward trend resumes. If you watched our other videos you know that we have higher target zones for gold.

      All the best,


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