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 Pause Should Extend - 21st April 19
Why Gold Has Been the Second Best Asset Class for the Last 20 Years - 21st April 19
Could Taxing the Rich Solve Income Inequality? - 21st April 19
Stock Market Euphoria Stunts Gold - 20th April 19
Is Political Partisanship Killing America? - 20th April 19
Trump - They Were All Lying - 20th April 19
The Global Economy Looks Disturbingly Like Japan Before Its “Lost Decade” - 19th April 19
Growing Bird of Paradise Strelitzia Plants, Pruning and Flower Guide Over 4 Years - 19th April 19
S&P 500’s Downward Reversal or Just Profit-Taking Action? - 18th April 19
US Stock Markets Setting Up For Increased Volatility - 18th April 19
Intel Corporation (INTC) Bullish Structure Favors More Upside - 18th April 19
Low New Zealand Inflation Rate Increases Chance of a Rate Cut - 18th April 19
Online Grocery Shopping Will Go Mainstream as Soon as This Year - 17th April 19
America Dancing On The Crumbling Precipice - 17th April 19
Watch The Financial Sector For The Next Stock Market Topping Pattern - 17th April 19
How Central Bank Gold Buying is Undermining the US Dollar - 17th April 19
Income-Generating Business - 17th April 19
INSOMNIA 64 Birmingham NEC Car Parking Info - 17th April 19
Trump May Regret His Fed Takeover Attempt - 16th April 19
Downside Risk in Gold & Gold Stocks - 16th April 19
Stock Market Melt-Up or Roll Over?…A Look At Two Scenarios - 16th April 19
Is the Stock Market Making a Head and Shoulders Topping Pattern? - 16th April 19
Will Powell’s Dovish Turn Support Gold? - 15th April 19
If History Is Any Indication, Stocks Should Rally Until the Fall of 2020 - 15th April 19
Stocks Get Closer to Last Year’s Record High - 15th April 19
Oil Price May Be Setup For A Move Back to $50 - 15th April 19
Stock Market Ready For A Pause! - 15th April 19
Shopping for Bargain Souvenirs in Fethiye Tuesday Market - Turkey Holidays 2019 - 15th April 19
From US-Sino Talks to New Trade Wars, Weakening Global Economic Prospects - 14th April 19
Stock Market Indexes Race For The New All-Time High - 14th April 19
Why Gold Price Will “Just Explode… in the Blink of an Eye” - 14th April 19

Market Oracle FREE Newsletter

Top 10 AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

Gold - The Correction is NOT Over !

Commodities / Gold & Silver Aug 15, 2006 - 09:35 PM GMT

By: Nadeem_Walayat

Commodities

After peaking at over $730, Gold corrected to 540, and the subsquent rally brought gold right to the 61.8% Fibanacii retracement which held ! This strongly suggests that gold has further downside to go, before it can resume the bullmarket.....


1. Trend lines- Likes along the uptrend line along the June lows currently at 545. If this breaks then along the peaks at 510, with the major uptrend line support at 470, which has to hold for gold to stay intact.
2. MACD
- (Bottom indicator) Clearly shows the overbought state that gold has been working off, the trend suggests that the MACD would need to get to zero before that overbought state would be fully worked off and a resumption of the uptrend is possible.
3. 40 week Moving Average
- Gold has already once held the 40week average during the June low, with the current the current level at approx 590.
4. Support -
Key support levels on the chart are 530 and 455.
5. Resistance -
Is along the downtrend along the highs in gold.

Technical Analysis - Given the rallies failure at 61.8%, the gold price strongly suggests an 100% move from the 680 peak down to 480. Thus is implying a break of the June low and targeting the main support trend line presently at 470. Now the strength of subsquent action will be gauged on exactly where the current correction bottoms i.e. above the June lows or not. But whatever gold does it MUST hold the uptrend line cutting in at 470 for the bull market to stay intact. But in the meantime does represent a good shorting opportunity, especially when all one hears is how everyone should be buying gold now !

Trade Point
GOLD is a SELL
- At current market prices of $625.
Stop-Loss - With a trailing stop loss $5 above the downtrend line from the 735 peak, currently at $660.
Target - Immediate target would have to be the uptrend line along the June low + $5, presently that indicates $550, Should that trend line break than $500 would be the next target for gold.

Nadeem Walayat

(c) MarketOracle.co.uk 2005 - 2006

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.


Post Comment

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

6 Critical Money Making Rules