Friday, May 1, 2015

GOLD Daily Chart Tight Bands

A big move is coming for gold since the standard deviation bands (pink) are squeezing in tight. Like squeezing a tube of toothpaste the pressure builds then boom, the cap flies open and the contents fly across the room, the only question is which direction. Price is honoring the standard deviation limits since March moving from the low boundary to the upper boundary and back again (pink dots). Price has violated the lower band so a move back to the middle band, at a minimum, at 1199, is in play--unless a big whoosh down begins right away due to the tight squeeze.

The chart indicators are squeezing in sideways not tipping their hand on direction. Gold bulls are happy with the RSI and stochatics above 50% while gold bears are happy under the 50% levels. Gold bears win big under 1181. Gold bulls win above 1217. Price staggers sideways through 1180-1215.

As this is typed, gold drops 8 bucks to 1175 so the move out of the tight bands may be a flush lower. Gold is currently not attractive as a long or short. If the move is lower now then it would be prudent to wait for a near-term bottom to go long. At the same time an upside breakout is not in play until price moves above 1217. 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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