Friday, November 22, 2013

GOLD Daily Chart Downward-Sloping Channel Oversold Lower Band Violation Sideways Symmetrical Triangle

Gold is beat like a rented mule these days. Price is moving down through the blue channel now at the lower rail. In the couple-week time frame, the histogram, stochastics and money flow are positively diverged wanting a bounce, but the RSI and MACD line want another low after the bounce. As price ventures lower towards a potential matching or lower low at 1200, watch the thin green lines which should create positive divergence and place the bottom. Gold price is violating the lower standard deviation band so a move back to the middle band at 1290-1300 would be anticipated, at a minimum.

GS slams gold for next year saying it will be beaten. They may be watching the brown sideways symmetrical triangle that forecasts a 300-handle move, and price collapsed under the lower trend line a couple weeks ago, so the downside target would be 1000-ish. Gold may develop into a trading vehicle moving forward. A bounce is anticipated taking price up to the top rail of the channel and towards the middle and upper standard deviation bands at 1280-1300 but then more weakness back down to current levels. At this time, the 1200-1240 area should hold moving forward. As 2014 begins, the charts can be reassessed. For now a long trade appears attractive, perhaps to 1280+, then short, back down to 1200-1250, then back up. In general, the gold miners are a more attractive play than gold moving forward. 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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