Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
The Only way to Crush Inflation (not stocks) - 14th Oct 21
Why "Losses Are the Norm" in the Stock Market - 14th Oct 21
Sub Species Castle Maze at Alton Towers Scarefest 2021 - 14th Oct 21
Which Wallet is Best for Storing NFTs? - 14th Oct 21
Ailing UK Pound Has Global Effects - 14th Oct 21
How to Get 6 Years Life Out of Your Overclocked PC System, Optimum GPU, CPU and MB Performance - 13th Oct 21
The Demand Shock of 2022 - 12th Oct 21
4 Reasons Why NFTs Could Be The Future - 12th Oct 21
Crimex Silver: Murder Most Foul - 12th Oct 21
Bitcoin Rockets In Preparation For Liftoff To $100,000 - 12th Oct 21
INTEL Tech Stock to the MOON! INTC 2000 vs 2021 Market Bubble WARNING - 11th Oct 21
AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
Stock Market Wall of Worry Meets NFPs - 11th Oct 21
Stock Market Intermediate Correction Continues - 11th Oct 21
China / US Stock Markets Divergence - 10th Oct 21
Can US Save Taiwan From China? Taiwan Strait Naval Battle - PLA vs 7th Fleet War Game Simulation - 10th Oct 21
Gold Price Outlook: The Inflation Chasm Between Europe and the US - 10th Oct 21
US Real Estate ETFs React To Rising Housing Market Mortgage Interest Rates - 10th Oct 21
US China War over Taiwan Simulation 2021, Invasion Forecast - Who Will Win? - 9th Oct 21
When Will the Fed Taper? - 9th Oct 21
Dancing with Ghouls and Ghosts at Alton Towers Scarefest 2021 - 9th Oct 21
Stock Market FOMO Going into Crash Season - 8th Oct 21
Scan Computers - Custom Build PC 6 Months Later, Reliability, Issues, Quality of Tech Support Review - 8th Oct 21
Gold and Silver: Your Financial Main Battle Tanks - 8th Oct 21
How to handle the “Twin Crises” Evergrande and Debt Ceiling Threatening Stocks - 8th Oct 21
Why a Peak in US Home Prices May Be Approaching - 8th Oct 21
Alton Towers Scarefest is BACK! Post Pandemic Frights Begin, What it's Like to Enter Scarefest 2021 - 8th Oct 21
AJ Bell vs II Interactive Investor - Which Platform is Best for Buying US FAANG Stocks UK Investing - 7th Oct 21
Gold: Evergrande Investors' Savior - 7th Oct 21
Here's What Really Sets Interest Rates (Not Central Banks) - 7th Oct 21
CISCO 2020 Dot com Bubble Stock vs 2021 Bubble Tech Stocks Warning Analysis - 6th Oct 21
Precious Metals Complex Searching for a Bottom - 6th Oct 21
FB, AMZN, NFLX, GOOG, AAPL and FANG+ '5 Waves' Speaks Volumes - 6th Oct 21
Budgies Flying Ability 10 Weeks After wings Clipped, Flight Feathers Cut Grow Back - 6th Oct 21
Why Silver Price Could Crash by 20%! - 5th Oct 21
Will China's Crackdown Send Bitcoin's Price Tumbling? - 5th Oct 21
Natural Gas News: Europe Lacks Supply, So It Turns to Asia - 5th Oct 21
Stock Market Correction: One More Spark to Light the Fire? - 5th Oct 21
Fractal Design Meshify S2, Best PC Case Review, Build Quality, Airflow etc. - 5th Oct 21
Chasing Value with Five More Biotech Stocks for the Long-run - 4th Oct 21
Gold’s Century - While stocks dominated headlines, gold quietly performed - 4th Oct 21
NASDAQ Stock Market Head-n-Shoulders Warns Of Market Weakness – Critical Topping Pattern - 4th Oct 21
US Dollar on plan, attended by the Gold/Silver ratio - 4th Oct 21
Aptorum Group - APM - High RIsk Biotech Stocks Buy, Sell, Hold Investing Analysis for the Long-run - 3rd Oct 21
US Close to Hitting the Debt Ceiling: Gold Doesn’t Care - 3rd Oct 21
Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
Original Oculus VR HeadSet Rift Dev Kit v1 Before Facebook Bought Oculus - 3rd Oct 21
Microsoft Stock Valuation 2021 vs 2000 Bubble - Buy Sell or Hold Invest Analysis - 1st Oct 21
How to profit off the Acquisition spree in Fintech Stocks - 1st Oct 21
�� Halloween 2021 TESCO Shopping Before the Next Big Panic Buying! �� - 1st Oct 2
The Guide to Building a Design Portfolio Online - 1st Oct 21
BioDelivery Sciences International - BDSI - High RIsk Biotech Stocks Buy, Sell, Hold Investing Analysis for the Long-run - 30th Sep 21
America’s Revolving-Door Politics Behind the Fall of US-Sino Ties - 30th Sep 21
Dovish to Hawkish Fed: Sounds Bearish for Gold - 30th Sep 21
Stock Market Gauntlet to the Fed - 30th Sep 21
Should you include ESG investments in your portfolio? - 30th Sep 21
Takeda - TAK - High RIsk Biotech Stocks Buy, Sell, Hold Investing Analysis for the Long-run - 29th Sep 21
Stock Market Wishing Away Inflation - 29th Sep 21
Why Workers Are NOT Returning to Work as Lockdown's End - Wage Slaves Rebellion - 29th Sep 21
UK Fuel PANIC! Fighting at the Petrol Pumps! As Lemmings Create a New Crisis - 29th Sep 21
Gold Could See Tapering as Soon as November! - 29th Sep 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold Some Room for Upside Action

Commodities / Gold & Silver 2009 Apr 12, 2009 - 08:34 AM GMT

By: Merv_Burak

Commodities Best Financial Markets Analysis ArticleOther than the sharp drop on Monday it was a quiet week for gold.  The volume suggested most traders left the market for the Easter vacation.  Next week is another week.


GOLD : LONG TERM

  

Although most of the week was pretty mild the Monday drop had broken a long term P&F support thereby giving me that second signal (the first being the crossing of the up trend line) for a new bear market.  Taking a horizontal count at the break I get a downside projection to $705, which is right where this latest upside move started from.  Although the projections have not always been accurate the trend reversals have done good service so I would be inclined to wait before any further action (except shorting) in the market.  Once this P&F chart reverses back to the up side one can more comfortably get back in.  Of course, for the aggressive speculator, almost anytime is okay to get in, understanding the risks involved.

Although the P&F chart has gone bearish the normal chart and indicators are not quite there yet.  The gold price closed the week just above its positive sloping moving average line.  The momentum indicator remains just above its neutral line in the positive zone although it is below its negative sloping trigger line and heading lower.  The volume indicator is moving laterally but with a downward bias and is below its negative trigger line.  Still, putting it all together the long term rating remains BULLISH.

INTERMEDIATE TERM

On the intermediate term everything continues to be negative.  The gold price remains below its moving average line and the line is sloping downward.  The momentum indicator is in its negative zone below a negative trigger line.  The volume indicator continues to drift below its negative sloping intermediate term trigger line.  All in all, the intermediate term rating remains BEARISH.

SHORT TERM

  

This is where we would most likely first see a change in trend to the positive but as yet that is not happening.  The gold price remains below its negative sloping moving average line and the momentum indicator remains in its negative zone below its negative trigger line.  The daily volume action is very low but that could be more due to the Easter holiday period. In any way the rating for the short term remains BEARISH.

As for the immediate direction of least resistance that would be to the down side.  There is some small potential for an upside move as the aggressive Stochastic Oscillator (SO) has broken above its oversold line and above its positive trigger line.  This, despite the past couple of days of negative price action.  We’ll just have to see how this plays itself out.

SILVER

Silver has broken into lower levels similar to gold but unlike gold the P&F chart has not yet issued a bear signal.  The previous “handle” pattern that silver price chart was forming is looking less and less like a handle with the past week’s decline.  The saucer reversal is still valid but we will now need new rally highs to confirm the saucer reversal message.  Other than that the long, intermediate and short term analysis is very much the same as for gold.

Precious Metal Stocks

It was an overall negative week for the precious metal stocks.  All of my Merv’s Indices were on the down side with a basic uniform decline.  No sector of the stocks was leading or lagging in the decline.  All the Indices declined by 3% plus or minus a few decimal points.  Only the Spec-Gold Index declined outside of this range and that was due to several stocks with double digit declines in the Index. 

Looking over the various Indices charts one gets the feeling of a topping going on BUT one still has this nagging feeling “why would gold stocks decline?”  With the world economies in turmoil, with pirates and terrorists pushing their weight around in almost all corners of the world one would think that gold, and by implication gold stocks, would be heading for the ceiling.  Oh well, that’s the way the markets work, they move to frustrate the most investors/speculators most of the time.

Right now most of the Indices are rated as bearish (NEG) for the short and intermediate term time periods.  Things are still bullish (POS) on the long term.  How long the long term can hold up, or if the long term will end up to be the strength behind a turn around in the other periods, we’ll just have to wait and see.  In the mean time as far as the technical indicators are concerned, now is not the time to be risking major investment capital.  Wait for the short and intermediate term technicals to reverse.  There are always stocks that move counter to the prevailing market.  IF you REALLY are convinced you know which these are then go for it but remember to protect yourself against an unexpected reversal.  Capital in hand is more important than a certificate on the decline.

Merv’s Precious Metals Indices Table

Well, that's it another week.

By Merv Burak, CMT
Hudson Aero/Systems Inc.
Technical Information Group
for Merv's Precious Metals Central

For DAILY Uranium stock commentary and WEEKLY Uranium market update check out my new Technically Uranium with Merv blog at http://techuranium.blogspot.com .

During the day Merv practices his engineering profession as a Consulting Aerospace Engineer. Once the sun goes down and night descends upon the earth Merv dons his other hat as a Chartered Market Technician ( CMT ) and tries to decipher what's going on in the securities markets. As an underground surveyor in the gold mines of Canada 's Northwest Territories in his youth, Merv has a soft spot for the gold industry and has developed several Gold Indices reflecting different aspects of the industry. As a basically lazy individual Merv's driving focus is to KEEP IT SIMPLE .

To find out more about Merv's various Gold Indices and component stocks, please visit http://preciousmetalscentral.com . There you will find samples of the Indices and their component stocks plus other publications of interest to gold investors.

Before you invest, Always check your market timing with a Qualified Professional Market Technician

Merv Burak 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