Tag: gold charts

Peter Schiff: Priced for collapse

Peter Schiff: Priced for collapse

Where is the gold price today? If you’re like many Americans, you have no idea whether it went up, down, or sideways. Fortunately, I know my readers to be more informed – you likely know that after falling from almost $1900, gold has been trapped around $1600 since early May. But you may still be curious why despite continued money-printing and abysmal US economic reports, gold hasn’t been able to hit new highs. Here’s the truth: gold is currently priced for collapse. Many investors believe the yellow metal has topped out and are selling into every rally. Nerves of Tin Being a gold investor is tough business. The last thing […]

Continue Reading

Follow up chart on Gold (Trade Management)

Follow up chart on Gold (Trade Management)

There are comments from me at the very bottom of the prior post that should be reviewed in this section. Basically what I said there was that this is a perfect example of why it doesn’t pay to be early in anticipation of breakouts.  Notice the grey trendline that failed on the 30 minute chart at the major multipoint trendline resistance.  There is a great lesson in “Trade Management” here. One thing that the 30 minute chart is starting to resemble is a bearish “Rounding Top” formation.  It hasn’t rolled over all the way, but I can intuitively see it as a development to keep an eye on. However the blue […]

Continue Reading

Gold Market Continues to Reflect Currency Turmoil

Gold Market Continues to Reflect Currency Turmoil

Simply put – as the situation in Europe further deteriorates (yesterday the market YAWNED at the $125 billion Spain bailout), Italy is now coming into focus. Strangely enough, the US equity markets somehow think all of this is inconsequential as the bulls there continue to be giddy with delight.Their attitude is best described by an old Steve Wariner song, “Some Fools Never Learn”. You play with the fire, you’re gonna get burned”.Considering just how tenuous things are, the degree of complacency that exists among equity bulls is nothing short of astonishing. The situation can best be described by looking at a chart of the VIX, or Volatility Index.While the index […]

Continue Reading

Gold Chart and Comments on 9 June 2012

Gold Chart and Comments on 9 June 2012

I have provided an 8 hour gold chart today as it provides a very good glimpse into the technical composition of that market’s recent price action. Note that you can clearly see the solid zone of buying support extending from just slightly above the $1550 level on down towards $1520. It has been at these levels that strong buying has continued to emerge over the last month. I suspect that it is in this zone that Asian Central Banks are gobbling up the metal. Remember, they will not chase the metal higher – only the hedge fund managers buy high and hope to buy even higher before selling. By keeping […]

Continue Reading

Gold And Crude Oil Charts: Does Any Clear Picture Emerge

Gold And Crude Oil Charts: Does Any Clear Picture Emerge

We have all seen the newspapers headlines about the troubles in Greece, Spain, Portugal, Ireland and the entire eurozone. The situation in the U.S. is not much better, even if the press is ignoring it for the moment. In both blocks there is high debt and large, long-term entitlement programs for citizens without any clear notion of where the money to fund these programs will come from. (Hint—the printing press.) The global economic situation is unstable and untenable. How long can citizens in the West continue to buy more and more imported manufactured goods from the East? When the West’s appetite for unessential consumer goods will lessen as people learn […]

Continue Reading

Gold Reverses Higher on Friday 6 June

Gold Reverses Higher on Friday 6 June

Gold moved higher Friday as the Euro cut its losses and as sources learned that Spain will soon request assistance for its ailing banks. However, for the week Gold declined because investors currently don’t see monetary easing from the Federal Reserve or European Central Bank. This week the ECB did not cut rates nor implement any new crisis fighting measures. Furthermore, yesterday Fed Chairman Ben Bernanke said it was too soon for another round of easing. We will hear more after the Fed meeting on June 19-20. It should be noted that Gold gained along with the US Dollar. The negative correlation between the two is the weakest it has […]

Continue Reading

Gold Achieves that ” 16 ” Handle

Gold Achieves that ” 16 ” Handle

Gold’s reaction to the payrolls number this morning was instantaneous – it shot up as if it was fired out of a cannon! As stated in the post on the mining shares this AM, gold is now fully expecting the Fed to move forward with a round of QE3 Sooner rather than later. It is this anticipation of a Fed move that has it blowing the recent hedge fund short positions out. Not only that, the ability to capture this elusive “16” handle and HOLD IT, has fresh money that has been sitting on the sidelines or in Treasuries (obtaining next to nothing for yield) willing to come in on the […]

Continue Reading

Gold Continues to Attract Buying at the Bottom of its Trading Range

Gold Continues to Attract Buying at the Bottom of its Trading Range

Gold has once again attracted strong buying down near the bottom of its broad 8 month trading range and has now bounced higher for the day. Strength in the yellow metal has pulled silver up a tad which was sinking under the weight of a collapsing copper market. While some are ready to pronounce gold DEAD as a safe haven asset, the chart picture denotes otherwise, especially given the broad weakness in the commodity sector as a whole and the rallying Dollar, which continues its technical march towards the 84 level on the USDX. Whenever I see gold moving higher alongside Treasuries and the Dollar, it tells me that all […]

Continue Reading

Gold Bouncing from Support in Asian Trade

Gold Bouncing from Support in Asian Trade

After what seems like a nearly vertical fall in the gold price over the last 7 or 8 days, gold is finally getting a bit of a reprieve this evening as it enters Asian trade. The interesting thing about this most recent selloff is that reports of physical offtake have indicated good buying of the metal down here at these levels. This has been swamped by hedge fund liquidation and some fresh short selling as some in this category are moving onto the short side. As you can see on the chart, gold fell nearly right to the very bottom of this 8 month long trading range before bouncing higher. It […]

Continue Reading

Target 1 reached on silver and update on gold

Target 1 reached on silver and update on gold

The initial profit taking target of the “Descending Triangle” pattern of the daily chart (right hand side below) on silver has been reached.  The “Head and Shoulders” pattern on the daily chart is still in play. Getting stopped out in noise or randomness for trailing a stop for no other reason but to protect a gain would have been brutal.  The profit from a swing trade in the descending triangle was good for approximately $11,500 per contract.  I discussed  “Trade Management” in the last post on silver here:http://scottpluschau.blogspot.com/2012/05/trade-management-in-silver.html I don’t take pride in pointing out patterns “after the fact”.  Anyone can do that.  I do it because these patterns have a history of repeating themselves and I believe […]

Continue Reading

Gold Chart and Comments – May 4th

Gold Chart and Comments – May 4th

Today’s payrolls number was just as rotten, if not more so, than most traders and analysts had been expecting. The numbers coming out of the private firms were indicating this and they were very accurate. The problem is that the jobs number was even worse than nearly anyone had anticipated so we did get a very strong reaction in the equity markets with bulls running to the hills sending up smoke signals (this one is for that famous native American running for the Senate in Mass.)  for Mr. Bernanke and company to come and save them. Alas, Mr. Bernanke must have been over sipping some latte at Starbucks as he was no where to be […]

Continue Reading

Takedown in Gold Price today Rejected

Takedown in Gold Price today Rejected

Take a look at the following 5 minute chart and note especially the volume readings posted below each individual price bar. Look just past the 5:00 AM Pacific time hour and you will see the enormous volume spike accompanying the sharp downdraft that occured in the gold price dropping it $15 in the course of minutes. Analysts are still grasping for an explanation. The most common is that it was another one of those “fat fingered trades”. Have you ever noticed how many fat fingered human beings apparently camp out in the trading community. Last time I checked a skinny finger could hit an “enter” key just as easily as […]

Continue Reading

Gold is on the verge of a change in trend

Gold is on the verge of a change in trend

Gold climbed a set of stairs for most of today’s Comex trading session on the 5 minute chart, and is at the upper trendline resistance of a perfectly parallel downward sloping channel on the daily chart.  If gold breaks out on a surge in volume I will be extremely focused on trading gold to the long side until there is a reversal or my near term price target of $1,722 is reached. A breakout of the channel could lead to sideways action, or range bound trading (Horizontal Development), but in my opinion the break will be something the Bulls need in order to consider trading gold again to the long side with any conviction.  I certainly won’t be looking to trade […]

Continue Reading

Gold Chart 3 April 2012

Gold Chart 3 April 2012

Gold managed to claw its way back above important technical resistance near the $1680 level in today’s trade and is thus far holding above that number, albeit just barely. The market needs to push away from $1680 with some conviction and demonstrate th…

Continue Reading