Monday, July 4, 2016

GOLD COT (Commitments of Traders) and Daily Charts

Gold has exploded higher since the Brexit vote about one week ago. Gold has been in an upward pattern for months. The charts say do not chase it. Also, scale out and take the profits, say, as the month of July proceeds. It will not be surprising to see gold whacked down to the blue sideways channel trend lines. The red lines show the multi-month  negative divergence remaining in place. The gold bulls are trying to sneak out a little more upside with the short green lines but it looks like gold may begin to roll over at anytime forward.

The upper standard deviation line (pink) is violated so a move back to the middle band at 1290 and rising is on the table and also the lower band at 1236 and rising. This week will be interesting and it begins with gold leaping higher to 1360 and now in the mid 1350's. This makes sense since it is testing that prior intraday high.

The COT chart shows the bars extended far out to the opposite sides verifying the idea that a significant top in gold is on the come. If you are a gold bull, it would be very prudent for you to become extremely cautious right now. 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 courtesy of COT Price Charts and annotated by Keystone.

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