Best of the Week
Most Popular
1. Gold Final Warning: Here Are the Stunning Implications of Plunging Gold Price - P_Radomski_CFA
2.Fed Balance Sheet QE4EVER - Stock Market Trend Forecast Analysis - Nadeem_Walayat
3.UK House Prices, Immigration, and Population Growth Mega Trend Forecast - Part1 - Nadeem_Walayat
4.Gold and Silver Precious Metals Pot Pourri - Rambus_Chartology
5.The Exponential Stocks Bull Market - Nadeem_Walayat
6.Yield Curve Inversion and the Stock Market 2019 - Nadeem_Walayat
7.America's 30 Blocks of Holes - James_Quinn
8.US Presidential Cycle and Stock Market Trend 2019 - Nadeem_Walayat
9.Dear Stocks Bull Market: Happy 10 Year Anniversary! - Troy_Bombardia
10.Britain's Demographic Time Bomb Has Gone Off! - Nadeem_Walayat
Last 7 days
Stock Market Crash Edition - 26th Mar 19
Handy Ways to Boost Your Home Income - 26th Mar 19
US Treasury Bond Yield Inversion and Political Fed Cycles - 26th Mar 19
Golan Heights Oil all about the Shekels - 26th Mar 19
Falling Yields a Catalyst for The Gold Catalyst - 26th Mar 19
Can We Lock Up Rachel Maddow Now? - 25th Mar 19
Real US National Debt Might Be $230 Trillion - 25th Mar 19
Friday's Stock Market Sell-Off - New Downtrend or Just Correction? - 25th Mar 19
20 Days Left to Find Buying Opportunities In Gold - 25th Mar 19
Will the Historic Imbalance in Gold Stocks to Gold Price Resolve ? - 25th Mar 19
EasySMX Wireless Games Controllers Review - 25th Mar 19
Stock Market Short-term Top - 25th Mar 19
UK Population Growth - Latest ONS Immigration Statistics and Consequences - 24th Mar 19
The Fed Follows Trump's Tweets, And Does The Right Thing - 24th Mar 19
Yield Curves, 2yr Yield, SPX Stocks and a Crack Up Boom? - 24th Mar 19
Risk/Reward in Silver Favors Buying Now, Not Waiting for Big Moves - 23rd Mar 19
Similarities Between Stock Market Today and Previous Bull Market Tops - 23rd Mar 19
Stock Market DOW Seasonal Trend Analysis - 23rd Mar 19
US Dollar Breakdown on Fed Was Much Worse Than It Looks - 23rd Mar 19
Gold Mid-Tier GDXJ Stocks Fundamentals - 23rd Mar 19
Which Currency Pairs Stand to Benefit from Prevailing Risk Aversion? - 23rd Mar 19
If You Get These 3 Things Right, You’ll Never Have to Worry About Money - 22nd Mar 19
March 2019 Cryptocurrency Technical Analysis - 22nd Mar 19
Turkey Tourist Fakes Market Bargains Haggling Top Tips - 22nd Mar 19
Next Recession: Finding A 48% Yield Amid The Ruins - 22nd Mar 19
Your Future Stock Returns Might Unpleasantly Surprise You - 22nd Mar 19
Fed Acknowledges “Recession Risks”. Run for the Hills! - 22nd Mar 19
Will Bridging Loans Grow in Demand and Usage in 2019? - 22nd Mar 19
Does Fed Know Something Gold Investors Do Not Know? - 21st Mar 19
Gold …Some Confirmations to Watch For - 21st Mar 19
UKIP No Longer About BrExit, Becomes BNP 2.0, Muslim Hate Party - 21st Mar 19
A Message to the Gold Bulls: Relying on the CoT Gives You A False Sense of Security - 20th Mar 19
The Secret to Funding a Green New Deal - 20th Mar 19
Vietnam, Part I: Colonialism and National Liberation - 20th Mar 19
Will the Fed Cut its Interest Rate Forecast, Pushing Gold Higher? - 20th Mar 19
Dow Jones Stock Market Topping Pattern - 20th Mar 19
Gold Stocks Outperform Gold but Not Stocks - 20th Mar 19
Here’s What You’re Not Hearing About the US - China Trade War - 20th Mar 19
US Overdosing on Debt - 19th Mar 19
Looking at the Economic Winter Season Ahead - 19th Mar 19
Will the Stock Market Crash Like 1937? - 19th Mar 19
Stock Market VIX Volaility Analysis - 19th Mar 19
FREE Access to Stock and Finanacial Markets Trading Analysis Worth $1229! - 19th Mar 19
US Stock Markets Price Anomaly Setup Continues - 19th Mar 19

Market Oracle FREE Newsletter

Stock Market Trend Forecast March to September 2019

Gold Bull Market Buy the Dips and Crude Oil About to Breakout

Commodities / Gold & Silver Jun 14, 2007 - 06:14 PM GMT

By: Peter_Degraaf

Commodities

“Ye got yer good news, and ye got yer bad news”

The bad news is that some of you were influenced by the ‘gold bears' who are forever looking at the ‘half-full' glass and calling it ‘half-empty'. You either sold during the past few days, or you allowed these bears to rob you of some good sound sleep!

Will these gold bears ever learn this simple trading rule: WHEN THE 200 DAY MOVING AVERAGE IS RISING, EVERY DIP TOWARDS, OR EVEN BELOW IT, IS AN OPPORTUNITY TO BUY!


Or how about this: “He/she who buys the dips and rides the waves usually comes out a WINNER!”

The good news is that the fundamentals for gold are as sound as ever! The World Gold Council report dated June 7/2007 AD shows world gold demand is running 31% above last year!

China and India are increasing their gold purchases, with India having bought 211 tonnes during Q1/07, double what they bought during Q1/06! Meanwhile mine production is declining. If it were not for central bank sales, gold would be selling at double today's price! And these bankers can only sell it once. Then its gone.

There was more BAD NEWS this morning, and gold initially dropped 3.00; the news release that Switzerland is going to sell 250 tonnes of gold during the next 2 years. What a pity that even the Swiss money managers feel compelled to sell their treasure, supposedly to pay off debt. The fact that gold only dropped 3.00 is GOOD NEWS! The increasing demand from India alone, projecting their quarterly increase out over the next two years, will more than absorb this ‘gold give-away'.

Featured is the weekly gold chart. The channel is well defined, and the green arrow points to an upside reversal, or climax. When an upside reversal occurs near a support line, price usually carries on for a month or more. The previous reversal (purple arrow) preceded 6 weeks of rising prices.

Featured is the SLV electronic silver unit. The channel is well defined, the 50DMA is in positive alignment to the 200DMA, (both of which are rising), and the progression of higher lows is ongoing. The RSI and MACD (short blue dashed lines), support the upward bounce.

Featured is the chart that compares the XAU mining stocks index to the gold price.

Experienced traders know that one of the gauges to determine if gold is going to rise or fall is to see which is stronger: gold or the gold mining stocks. During a correction, mining stocks fall faster, and during the ‘up phase' stocks rise faster, caused by leverage to the gold price. Since mid-March this index has been turning up, in a move that is supported by the RSI and MACD indicators (blue dashed lines).

Featured is the US dollar daily bar chart. The green arrows are targets that have either been reached, or are close to being reached. The negative effect that the dollar has had on the metals for the past 5 weeks is most likely behind us for a while.

Featured is one of the most exciting charts in my arsenal. It is a combination of an inverted ‘heads and shoulders' formation, along with an ARAT, (Advancing Right Angled Triangle). The ongoing attempt to break out at the horizontal resistance line, is the fifth attempt, and it is the nature of an ARAT to offer less resistance at each attempt, as the energy to withstand the upward thrust is diminished with every attempt. All we need is two closes above 67.00, and we will be looking at a 75.00 target. This has serious ‘price inflationary' implications, and will be bullish for the Precious Metals, and it could happen any day now!

By Peter Degraaf.

Peter Degraaf is an online stock trader with over 50 years of metals trading experience. He sends out a weekly E-mail to his many subscribers. For a 60 day free trial, contact him at ITISWELL@COGECO.CA

DISCLAIMER: Please do your own due diligence. I am NOT responsible for your trading decisions.

Peter Degraaf Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules