Tuesday, November 26, 2013

GOLD Daily Chart Downward-Sloping Channel Lower Band Violation

The gold miners are more attractive currently, from the long side, than gold, but gold is setting up for upside as well. Gold violated the lower standard deviation band so a move to the middle band at 1290, at a minimum, is on the table. The stochastics and money flow want to see this bounce occur, however, the RSI and MACD (short red lines) want to see more downside after any bounce occurs. If price moves lower, the anticipation is that any matching price low will create positive divergence (watch thin neon green lines), and cause price to recover. The GDX chart in this time frame is very helpful. It shows GDX already collapsing down to the matching lows from July with positive divergence in place. So both gold and gold miners are attractive longs moving forward but the miners are preferredover the metal. Gold price is expected to maintain the blue channel, or return up inside if price does explore the 1200-1240 area, and move towards the top rail at 1300-1320 and/or 20-day MA at 1290 and falling. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.

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