RSSCategory: Category: Technicals

A Gold-en Anchor on Prices

A Gold-en Anchor on Prices

Gold is testing a critical support level around 1085. This zone represents the convergence of two Fibonacci extensions (the 127.2% extension of the November-January rally and the 161.8% extension of the March-May upswing), as well as the intraday lows on Monday and Wednesday. As we go to press, gold is peeking below that support zone, but it may be worth waiting for the weekly close before assuming that it’s been conclusively broken, especially given the deeply oversold daily RSI indicator.

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Gold – How Much Downside Left In This Secular Bull Trend?

Gold – How Much Downside Left In This Secular Bull Trend?

Let’s take a look at the Gold and Silver charts and see what’s going on. Most of the charts in this letter use Heikin Ashi (HA) candlesticks, a variation of the traditional Japanese candlesticks. The HA candles filter out some of the noise in a price chart and make it easier to focus on trends. In this monthly chart of Gold it is obvious that the current trend is down even without the HA candles.

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Gold And Silver Technical Charts – 13 July 2015

Gold And Silver Technical Charts – 13 July 2015

Gold continues waffling around within its $75 price range. This week we had two successful tests of support at the $1150 level, the bottom of the range. With significant economic uncertainty in recent weeks, this lack of response in Gold is somewhat surprising.

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It’s Groundhog Day Again for Gold Bulls

It’s Groundhog Day Again for Gold Bulls

From a technical perspective, gold is working on a potential Bearish Engulfing Candle* on the daily chart, signaling a big shift to selling pressure. Unless we see a rally during today’s US session, this candlestick pattern will suggest a possible continuation down toward last week’s low in the mid-1150s.

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Gold’s Technical Picture Is Slightly Improving

Gold’s Technical Picture Is Slightly Improving

Based solely upon the price movement of $GOLD, the outlook leans toward the negative. However, the expected continued weakness in the dollar, and improvement in the sentiment for gold, give us an indication that gold may finally begin to move higher in the longer term. Nevertheless, I still feel like it is about a 50-50 call at this point.

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Gold’s $817 Target By No Means A Done Deal

Gold’s $817 Target By No Means A Done Deal

I’ve been using an $817 target for Comex Gold since September 2013. If the futures were to fall to that price, it would represent a 32% decline from current levels of around $1193 and a 57% decline from the all-time high of $1920 achieved in September 2011. A fall to $817 is by no means a done deal, however.

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Metals Complex: Every Which Way but Up

Metals Complex: Every Which Way but Up

Gold is unresolved but weak. Silver looks neutral. Aluminum is poised to reverse the base. Copper is retreating from major resistance. Platinum poised to break down. Palladium is neutral.

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Why $1120.50 Is Critical for The Price Of Gold

Why $1120.50 Is Critical for The Price Of Gold

So far, the low of the 43-month-old bear market is 1134.10, leaving about $13 of room before we have reason for deep concern. And just to be sure, I’ll stipulate that the June contract close beneath 1120.50 for two consecutive months before we assume the 808.50 target is in play. Meanwhile, that midpoint support should be regarded not only as a minimum downside objective for now, but as a potential spot to try bottom-fishing with a tight stop-loss.

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Precious Metals: Contratrend Rally And Not

Precious Metals: Contratrend Rally And Not

Gold Spot price carries an enigma in behavior over the past six months in that with the dollar rally, Gold went nowhere; with the stock market rally, Gold went nowhere. Both of these relationships are generally inverse in nature. However, from a Relative Strength perspective, the expected underperformance of Gold versus the dollar and versus stocks, has held 6 Gold has underperformed both.

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Will Gold’s Price Decline Turn Out To Be An Opportunity?

Will Gold’s Price Decline Turn Out To Be An Opportunity?

We’ll probably know before the opening bell whether Thursday’s nasty, $34 selloff was merely gratuitous. Rumor had it that some big sellers clobbered gold yesterday because they felt like it, but we’ll reserve judgment until it has been confirmed by the Times (take your pick which Times). Notice, however, that the 1253.50 rally target we’ve been using this week is still valid, albeit barely, since the low of yesterday’s hit-job left the point ‘C’ low of the rally pattern intact.

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Back Into the Jumble Zone for Gold

Back Into the Jumble Zone for Gold

The upper median line of the mod-Schiff fork is defining the resistance level for Gold on the upside. The “jumble-zone” is defining support on the downside. I have written more than once about the mess of support and resistance levels in the $1180 to $1190 region and Gold is back in that area again. There is a lot of energy in this region because of the failed triple bottom around $1183.

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Gold Bulls to the Rescue, and None Too Soon

| April 16, 2015 | Category: Technicals
Gold Bulls to the Rescue, and None Too Soon

Gold has a scary habit of pulling out of its all-too-frequent kamikaze dives just before splattering on the deck, technically speaking. If, for one, yesterday’s selloff had exceeded 1187.20 to the downside, we might have expected it to continue to at least 1175.60. Instead, bulls showed up in a nick of time, turning the futures higher from 1188.30. The result was an impulsive rally on the hourly chart that has kept alive the large, bullish pattern shown. It projects to as high as 1227.50 over the near term.

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Is Gold Forming A Major Bottom?

| April 15, 2015 | Category: Technicals
Is Gold Forming A Major Bottom?

Before diving into Gold’s technicals and recent trading patterns, I’d like to reiterate that I believe Gold is in the process of completing a wide, bear market bottoming process. I’ve mentioned before my belief that Gold double bottomed in December 2014, and it’s critical context to keep in mind as we examine Gold’s current action.

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Silver Rallies, but at the Wrong Time

Silver Rallies, but at the Wrong Time

Buyers probed and diddled the 17.240 pivot for nearly seven hours yesterday before taking a running start at it. This they did, however, at a time of day when durable rallies almost never happen, and this one was no exception. Buyers will need to regroup for another try, presumably within the bullish framework of the pattern shown.

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