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Trading Lessons

Seasonal Gold Price Correction on the Way

Commodities / Gold and Silver 2016 Feb 13, 2016 - 11:09 AM GMT

By: Submissions

Commodities

Goldvybe writes: Not much has changed since our gold correction commentary post on the 10th (here) except that gold had spiked up to $1263 on Thursday after global equities weakness and continued fears about European banks.

The fib retracements have stayed pretty much the same except now moving up a bit. For the most part, our analysis has not changed as we still anticipate a move lower from the seasonal February high into a seasonal low (March-April) of between $1130-$1150.



Of course gold could stay strong and correct only down to its 38.2% retracement level but if history is any guide, we should see a correction of at least 50 to 61.8%. When gold fired off its previous long-term buy signal on January 20th, 2009, gold immediately shot up to $1007 and by April it came all the way back down to $864.

In conjunction, gold came back down to its 37EMA which is ideal for establishing long-term positions if the gold price has already moved much higher. While we will get our anticipated long-term buy signal on this coming Monday’s open, we would certainly not want to establish leveraged positions this far away from the 8/37EMAs.

Prudence suggests to wait until prices back down to the seasonal low timeframe and anticipated price zone and we should start entering long positions in the late-March / early-April timeframe.

By Goldvybe

About Goldvybe.com can be found here: http://www.goldvybe.com/about.html

© 2016 Copyright Goldvybe - 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.


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