Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
Stock Market Coronavirus Deviation from Overall Outlook for 2020 - Video - 28th Feb 20
Stock Market SPX to Rise back to 3350 - 28th Feb 20
Stock Performance in the Rising Coronavirus Fever - 28th Feb 20
Stock Market SPY Breaks Below Fibonacci Bearish Trigger Level - 28th Feb 20
Will CoronaVirus Pandemic Trigger Stocks Bear Market 2020? - 28th Feb 20
Dow Long-term Trend Analysis - Coronavirus Triggering a Stocks Bear Market? - 27th Feb 20
Trump or Sanders? Both will pile up the Debt - 27th Feb 20
Oil Price Is Now More Volatile Than Bitcoin - 27th Feb 20
A Digital “Fedcoin” May Be Coming… And It Would Be Terrifying - 27th Feb 20
India's Nifty 50 Stocks: Does the Bad Jobs Outlook Spell Trouble for Stocks? - 27th Feb 20
How Crypto Currencies Are Helping Players Go Private - 27th Feb 20 -
Gold and Silver The Die Is Cast - 27th Feb 20
US Economy Permanently Addicted to Zero Interest Rates - 27th Feb 20
Has the Stock Market Waterfall Event Started Or A Buying Opportunity? - 27th Feb 20
Advantages of Enrolling in a Retirement Plan - 27th Feb 20 - LS
South Korea Coronavirus Outbreak Data Analysis Warning Rate of Infection is Exponential! - 26th Feb 20
Gold Price Long-term Trend Analysis Forecast 2020 - 26th Feb 20
Fake Markets Are on Collision Course with Reality - 26th Feb 20
Microsoft is Crushing the S&P 500, Secret Trait Of Stocks That Soar 1,000%+ - 26th Feb 20
Europe's Best Ski Resorts For The Ultimate Adventure - 26th Feb 20
Samsung Galaxy S20+ vs Galaxy S10+ Which One to Buy? - 26th Feb 20
Gold Is Taking on $1,700 amid Rising Coronavirus Fears - 26th Feb 20
Is This What Falling Through the Floor Looks Like in Stocks? - 26th Feb 20
Gold Minsky Moment Coming - 26th Feb 20
Why Every Student Should Study Economics - 26th Feb 20
Stock Market Correction Over? - 26th Feb 20
US Bond Market Yield Curve Patterns – What To Expect In 2020 - 25th Feb 20
Has Stock Market Waterfall Event Started Or A Buying Opportunity? - 25th Feb 20
Coronavirus IN Sheffield! Royal Hallamshire Hospital treating 2 infected Patients, UK - 25th Feb 20
Dow Short-term Trend Analysis - Coronavirus Trigger a Stocks Bear Market? - 24th Feb 20
Sustained Silver Rally Coming? - 24th Feb 20
Should Investors Worry about Repo Market and Buy Gold? - 24th Feb 20
Are FANG Technology Stocks Setting Up For A Market Crash? - 24th Feb 20
Gold Above $1,600 Amid FOMC Minutes and Coronavirus Impact - 24th Feb 20
CoronaVirus Pandemic Day 76 Trend Forecast Update - Infected 540k, Minus China 1715, Deaths 4920 - 23rd Feb 20 -
Ways to Find Startup Capital - 23rd Feb 20
Stock Market Deviation from Overall Outlook for 2020 - 22nd Feb 20
The Shanghai Composite and Coronavirus: A Revealing Perspective - 22nd Feb 20
Baltic Dry, Copper, Oil, Tech and China Continue Call for Stock Market Crash Soon - 22nd Feb 20
Gold Warning – This is Not a Buying Opportunity - 22nd Feb 20
Is The Technology Sector FANG Stocks Setting Up For A Market Crash? - 22nd Feb 20
Coronavirus China Infection Statistics Analysis, Probability Forecasts 1/2 Million Infected - 21st Feb 20
Is Crude Oil Firmly on the Upswing Now? - 20th Feb 20
What Can Stop the Stocks Bull – Or At Least, Make It Pause? - 20th Feb 20
Trump and Economic News That Drive Gold, Not Just Coronavirus - 20th Feb 20
Coronavirus COVID19 UK Infection Prevention, Boosting Immune Systems, Birmingham, Sheffield - 20th Feb 20
Silver’s Valuable Insights Into the Upcoming PMs Rally - 20th Feb 20
Coronavirus Coming Storm Act Now to Protect Yourselves and Family to Survive COVID-19 Pandemic - 19th Feb 20
Future Silver Prices Will Shock People, and They’ll Kick Themselves for Not Buying Under $20… - 19th Feb 20
What Alexis Kennedy Learned from Launching Cultist Simulator - 19th Feb 20
Stock Market Potential Short-term top - 18th Feb 20
Coronavirus Fourth Turning - No One Gets Out Of Here Alive! - 18th Feb 20
The Stocks Hit Worst From the Coronavirus - 18th Feb 20
Tips on Pest Control: How to Prevent Pests and Rodents - 18th Feb 20
Buying a Custom Built Gaming PC From Overclockers.co.uk - 1. Delivery and Unboxing - 17th Feb 20
BAIDU (BIDU) Illustrates Why You Should NOT Invest in Chinese Stocks - 17th Feb 20
Financial Markets News Report: February 17, 2020 - February 21, 2020 - 17th Feb 20
NVIDIA (NVDA) GPU King For AI Mega-trend Tech Stocks Investing 2020 - 17th Feb 20
Stock Market Bubble - No One Gets Out Of Here Alive! - 17th Feb 20
British Pound GBP Trend Forecast 2020 - 16th Feb 20
SAMSUNG AI Mega-trend Tech Stocks Investing 2020 - 16th Feb 20
Ignore the Polls, the Markets Have Already Told You Who Wins in 2020 - 16th Feb 20
UK Coronavirus COVID-19 Pandemic WARNING! Sheffield, Manchester, Birmingham Outbreaks Probable - 16th Feb 20
iShares Nasdaq Biotechnology ETF IBB AI Mega-trend Tech Stocks Investing 2020 - 15th Feb 20
Gold Stocks Still Stalled - 15th Feb 20
Is The Technology Stocks Sector Setting Up For A Crash? - 15th Feb 20
UK Calm Before Corona Virus Storm - Infections Forecast into End March 2020 - 15th Feb 20

Market Oracle FREE Newsletter

Coronavirus-bear-market-2020-analysis

Gold Bull Market set to resume

Commodities / Forecasts & Technical Analysis Jan 21, 2007 - 11:15 PM GMT

By: Nadeem_Walayat

Commodities Gold has been in a corrective pattern since the May 2006 peak, attempting to build a base in anticipation of the resumption of the bull market. Now finally, Gold appears ready to resume the up trend with clear technical indicators signaling a breakout is imminent.


Gold About to break higher

Free Elliott Wave Tutorial

Technical Analysis

  1. Price Patterns - The price pattern being played out by Gold since the May 06 highs is that of a symmetrical triangle, which usually breaks in favour of the preceding trend which in this case is higher.
  2. Resistance - The up channel line is containing the up trend.
  3. Support - Immediate support lies below the last low (2) at 600. Major support is at 560. though 600 is expected to hold any immediate correction.
  4. MACD - (Bottom indicator) - The MACD is also in a symmetrical triangle, though in a neutral state, which suggests a break higher in gold could carry someway before the metal next reaches an overbought state.
  5. Elliott Waves - The basic elliott wave pattern suggests an ABC correction which bottomed in October 2006, and subsequent price action supports the start of a new leg higher for GOLD in the forms of Wave 1 UP, and the corrective Wave 2 down. So the elliott wave pattern supports other TA as it should be used as a secondary indicator rather a primary indicator of trend.
  6. % Levels - The symmetrical triangle pattern measures 190 points and therefore key %'s are : 50% = 635, Current resistance, 61.8% = 657. Peak of Wave 1. 100% = 730, May peak, 150% = 825, - 1st Target, 161.8% =847 - 2nd Target. 200% = 920 - 3rd Target.
  7. Up trend Line - .The key support trendline is along the A and C lows. The current correction as identified by wave 2 failed to get anywhere near this support trendline, which is a sign of strength
  8. Inter-market Analysis - What's not gone unnoticed is gold's relative strength in the face of breakdowns in other metals and commodities such as copper and crude oil. Thus suggests strong support for gold during the correction in anticipation of the resumption of the bull market.
  9. Time - Gold has now unwound its overbought state, having corrected for 7 months since the peak in May 06, which sets the scene for a substantial rally in terms of time and price.

Conclusion - Gold is looking very bullish as it is about to break out of the symmetrical triangle pattern, with other supporting analysis suggesting this to be imminent. The up trend is likely to carry gold beyond the previous high set in May 06, upwards and onwards towards to 847 and eventually to over 900, targeting 920 this year !

Buy Trigger - The two key buy triggers for Gold are 636 and 658. With gold at 636, it is on the verge of confirming a break of the first trigger. The best position would be a rolling spot contract. Or longer term investors can hold gold directly at bullionvault.com
Target - A break above 658 would target 847.
Stop-Loss - A position at the current price of 636 would require a stop at 600. A break of 658 at 626.

By Nadeem Walayat

(c) MarketOracle.co.uk 2007

Disclaimer - This Forecast / Trade Scenerio is provided for general information purposes only and not a solicitation or recommendation to enter into any market position, and you are reminded to seek independent professional advice before entering into any investments or trading positions.

The Market Oracle is a FREE Financial Markets Forecasting & Analysis online publication. We aim to cut through the noise cluttering traditional sources of market analysis and get to the key points of where the markets are at and where they are expected to move to next ! http://www.marketoracle.co.uk

This article maybe reproduced if reprinted in its entirety with links to http://www.marketoracle.co.uk


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


Comments

john allison
06 Aug 07, 21:26
gold

from all reports it seems to be the time to be

involved in the gold market


ranna
22 Nov 07, 08:36
Guest Request for Oil $100

I am writing to you from Press Tv in regards to a show i have on Sunday 24/11/07 at 18:00GMT.

We will be discussing Oil reaching USD 100, and some of the other issues that will be raised are the Iranian Oil minister said the rising of the prices are unreal. Also the fact that gold is higher against the dollar in the USA.

if you do have a representative available to appear on a live broadcast with a panel of other experts located around the world, then please let me know.

kind regards,

Ranna Mosavie

0208XXXXXXX


Post Comment

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

6 Critical Money Making Rules