Wednesday, May 28, 2014

GOLD Weekly Chart Sideways Channel

Gold fell out of bed over the last couple days. Traders are not worried or concerned about any geopolitical events, not Ukraine, not deteriorating conditions in Libya, not Syria, not Nigeria, not the increasing Asian nation territorial water disputes, not the Fukishima ongoing nuclear disaster, nothing. Everything is blues skies and rosy so folks buy stocks instead of gold. Gold price is struggling at overcoming the 50-week MA and receives a spank down from this resistance. Price also fell under the 20-week MA. Both of these key moving averages are at or near the psychological 1300 level that serves as important resistance going forward.

The gold COT chart hints at further weakness in gold price so the strong 1220-1260 support area is targeted as a potential bottom in the coming weeks. The brown sideways channel will likely continue so buying gold near the bottom of the channel is a good move to ride it back up to the top of the channel. If 1220 fails, price will be down at 1180 in quick order. The 20-week MA is crossing above the 50-week MA a bullish indication. Gold will verify that up is the direction for an extended period once price moves above the 50-week MA. The current gold action is basing behavior. 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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