Best of the Week
Most Popular
1. Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - Raymond_Matison
2.Uber’s Nightmare Has Just Started - Stephen_McBride
3.Stock Market Crash Black Swan Event Set Up Sept 12th? - Brad_Gudgeon
4.GDow Stock Market Trend Forecast Update - Nadeem_Walayat
5.Gold Significant Correction Has Started - Clive_Maund
6.British Pound GBP vs Brexit Chaos Timeline - Nadeem_Walayat
7.Cameco Crash, Uranium Sector Won’t Catch a break - Richard_Mills
8.Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - Dan_Amerman
9.Gold When Global Insanity Prevails - Michael Ballanger
10.UK General Election Forecast 2019 - Betting Market Odds - Nadeem_Walayat
Last 7 days
Canadian Cannabis Stocks CRASH as Canopy Growth Hits a Dead End - 14th Dec 19
Retail Sector Isn’t Dead, and These 6% Dividend Paying Stocks Prove It - 14th Dec 19
Top 5 Ways to Add Value to Your Home - 14th Dec 19
Beware Gold Stocks Downside - 13th Dec 19
Fed Says No Interest Rate Hikes In 2020. What About Gold? - 13th Dec 19
The ABC’s of Fiat Money - 13th Dec 19
Why Jo Swinson and the Lib Dems LOST Seats General Election 2019 - Sheffiled Hallam Result - 13th Dec 19
UK General Election 2019 BBC Exit Poll Forecast Accuracy Analysis - 12th Dec 19
Technical Analysis Update: Tadawul All Share Index (TASI) - Saudi Arabia ETF (KSA) - 12th Dec 19
Silver Miners Pinpoint the Precious Metals’ Outlook - 12th Dec 19
How Google Has Become the Worlds Biggest Travel Company - 12th Dec 19
UK Election Seats Forecasts - Tories 326, Labour 241, SNP 40, Lib Dems 17 - 12th Dec 19
UK General Election 2019 Final Seats Per Party Forecast - 12th Dec 19
What UK CPI, RPI INFLATION Forecasts for General Election Result 2019 - 11th Dec 19
Gold ETF Holdings Surge… But Do They Actually Hold Gold? - 11th Dec 19
Gold, Silver Reversals, Lower Prices and Our Precious Profits - 11th Dec 19
Opinion Pollsters, YouGov MRP General Election 2019 Result Seats Forecast - 11th Dec 19
UK General Election Tory and Labour Marginal Seats Analysis, Implied Forecast 2019 - 11th Dec 19
UK General Election 2019 - Tory Seats Forecast Based on GDP Growth - 11th Dec 19
YouGov's MRP Poll Final Tory Seats Forecast Revised Down From 359 to 338, Possibly Lower? - 10th Dec 19
What UK Economy (Average Earnings) Predicts for General Election Results 2019 - 10th Dec 19
Labour vs Tory Manifesto's UK General Election Parliamentary Seats Forecast 2019 - 10th Dec 19
Lumber is about to rally and how to play it with this ETF - 10th Dec 19
Social Mood and Leaders Impact on General Election Forecast 2019 - 9th Dec 19
Long-term Potential for Gold Remains Strong! - 9th Dec 19
Stock and Financial Markets Review - 9th Dec 19
Labour / Tory Manifesto's Impact on UK General Election Seats Forecast 2019 - 9th Dec 19
Tory Seats Forecast 2019 General Election Based on UK House Prices Momentum Analysis - 9th Dec 19
Top Tory Marginal Seats at Risk of Loss to Labour and Lib Dems - Election 2019 - 9th Dec 19
UK House Prices Momentum Tory Seats Forecast General Election 2019 - 8th Dec 19
Why Labour is Set to Lose Sheffield Seats at General Election 2019 - 8th Dec 19
Gold and Silver Opportunity Here Is As Good As It Gets - 8th Dec 19
High Yield Bond and Transports Signal Gold Buy Signal - 8th Dec 19
Gold & Silver Stocks Belie CoT Caution - 8th Dec 19
Will Labour Government Spending Bankrupt Britain? UK Debt and Deficits - 7th Dec 19
Lib Dem Fake Tory Election Leaflets - Sheffield Hallam General Election 2019 - 7th Dec 19
You Should Be Buying Gold Stocks Now - 6th Dec 19
The End of Apple Has Begun - 6th Dec 19
How Much Crude Oil Do You Unknowingly Eat? - 6th Dec 19
Labour vs Tory Manifesto Voter Bribes Impact on UK General Election Forecast - 6th Dec 19
Gold Price Forecast – Has the Recovery Finished? - 6th Dec 19
Precious Metals Ratio Charts - 6th Dec 19
Climate Emergency vs Labour Tree Felling Councils Reality - Sheffield General Election 2019 - 6th Dec 19
What Fake UK Unemployment Statistics Predict for General Election Result 2019 - 6th Dec 19

Market Oracle FREE Newsletter

UK General Election Forecast 2019

Gold Indepth Analysis and Charts on Daily and Weekly Timeframes

Commodities / Gold and Silver 2011 Aug 29, 2011 - 12:51 PM GMT

By: Capital3X

Commodities

Best Financial Markets Analysis ArticleGold touched intra day 1913 before correcting back to 1700. The level of the pullback and the speed with which it pulled back may have surprised many. But this was expected given the parabolic trend (Weekly charts) into which Gold has now entered.

We have superimposed powerful indicators on daily and weekly charts for Gold to understand price action in future. So often proved by us, that yesterday price action can predict tomorrow price action with a high degree of certainty!


We have worked at firms like PIMCO where this has been done on a regular basis which is why hedge funds make money. Now for the first time, we are bringing these tools onto the retail space.

Gold Daily charts: A pause ?

The daily charts are suggesting a break in strength. While the trend was just nearly maintained last week but just about.

  • Price Stochastic are at 48 levels while volumes stochastic are also below 50. The daily trend strength has now weakened. We look forward to a zone of strong consolidation with prices to fluctuate below 1850-1875. The downtrend can extend upto 1600 on a conservative basis and 1400 on an aggressive basis.
  • Directional Indicators(Vortex Indicators) are showing a pause in the trend.The +VI has now almost converged to -VI at 0.91. The +VI is for the record above the -VI. But these things can change in one hour of trading and hence we do not read too much into the levels when they are that close.
  • ADX is at a pathetic 22 levels. ADX is indicating that Gold is going into period of consolidation with lots of sideways movement. The new step level is between 1600 and 1850.

We are extremely bullish Gold but as a smart trader one needs to put the money where the big moves are happening. Gold will be a intra day traders delight and we will be putting Gold trade for our day traders. But for the long term term trader with wide margins, we look at the weekly charts below.

Gold Weekly charts: Hyper Bullish ?


The weekly charts are suggesting further upside. If this is a parabolic breakout, which we do believe it is, there is far more upside left in this move.

  • Price Stochastic are at 87 levels while volumes stochastic are also well above 50. The weekly strength in Gold continues to be strong.
  • Directional Indicators(Vortex Indicators) are showing further gains with the +VI diverging away from -VI on the upside, vetting the upmove.
  • ADX is at 74 levels. Any level above 40 is bullish. But we also understand that ADX indicators are lagging indicator and only flashes its signals once a move is well underway. We love to catch a move right in the first 5% of its move.
  • Weekly RSI are at 71 but we have never paid attention to RSI as they lag the price movement. There is no point looking back at a move and saying we could have done this based on RSI.

Our analysis on price action on the weekly charts indicate renewed bullish strength for Gold. Nothing has changed for Gold over the last 10 days even though it has come off by 10%. But the short term traders playing on small margins with limited capital must be careful trading the weekly charts for Gold. Gold on a intra week basis can swing as much as 20% and wipe off most traders. Therefore, short term traders beware of  Gold charts on weekly basis. Short term traders must concentrate on daily charts which call for caution.

Our feeds: RSS feed
Our Twitter: Follow Us

Kate
Capital3x.com
Kate, trading experience with PIMCO, now manage capital3x.com. Check performance before you subscribe.

© 2011 Copyright Capital3X - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 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