Thursday, June 18, 2015

Gold Daily and COT (Committments of Traders) Charts

Gold remains in a trendless sideways pattern. This is verified by the ADX down at 10 showing no trend in place for price. The last strong trend was in March when price was dropping and the ADX was above 25. The gold daily chart indicators are all stumbling sideways not knowing which way to break. The RSI and money flow are at 50% the demarcation line between bulls and bears; ditto the MACD line at zero-ish. The blue sideways triangle is in play also verifying the ongoing sideways nature of price. The vertical side of the triangle is about 90 bucks so a big winner will be crowned one way or the other for the weeks and months ahead. If price breaks above 1200 the 1290 level is targeted. If price fails from 1160, gold will target 1070 below.

Gold is up to 1195 in current trading testing the 50-day MA resistance at 1194. Price is under the moving average ribbon so a mean reversion higher is in play. The 1160-1170 support area is key, however, and must be held by the gold bulls.

The COT chart shows the corresponding price highs and lows in price over the last year. The bars are moving towards the centerline which is consistent with a move towards a price bottom. COT data lags by a week or two, however. The edge has to be given to the gold bulls but the charts need to play out further and can be revisited in a couple weeks or so. If gold moves above the 50-day MA at 1194 that is a major victory for gold bulls and above 1200 the bulls will be celebrating. The US dollar index drops after Fed Chair Yellen's typical dovish talk at the FOMC press conference yesterday and this morning the USD drops through 94 to 93.77 sending gold higher. 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.

Note: The COT chart is provided courtesy of COT Price Charts an excellent site and annotated by Keystone.

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