Wednesday, January 8, 2014

Gold COT (Commitments of Traders) Chart

The COT reports are great indicators for commodities although the data typically lags by a week or two. The red circles show the bottoms in gold price and the green circles show the tops in gold. Gold makes two price lows over the last one-half year; first, the price low in late June-early July and second, over the last couple weeks or so. Note how the light blue bars and red bars do not print lower than the summer lows. This hints that price is bottoming. The daily price chart, not shown, shows positive divergence for the price low to price low as well. Looks like gold wants to base in here moving forward. Projection is sideways to sideways higher for gold moving forward. Gold leaped higher in recent days from the 1180 low to 1240-ish high, 60 bucks, +5%. The 20-day MA for gold is 1222 so watch this level as support moving forward. Gold may develop a sideways channel through 1180-1420 into the summer time. Gold is currently printing 1226. 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.

The chart is from Free Commitments of Traders Charts web site and annotated by Keystone. Many other COT commodity charts are provided at this useful site;

COT Charts

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