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
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21
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 Stuck Below $1130, Waiting to Take Off

Commodities / Gold and Silver 2010 Feb 21, 2010 - 07:37 AM GMT

By: Merv_Burak

Commodities

Best Financial Markets Analysis ArticleThe wedge was broken on the up side but still gold is stuck below $1130.  Maybe this week it will take-off.  The daily volume, however, is not encouraging.


GOLD : LONG TERM

The long term P&F chart is still in a BEAR phase and would take, at this time, a move to $1170 before it reverses its trend.  That does not seem like it is in the works anytime over the next few days, but who knows?

As for our normal technical indicators, the price of gold continues to trade above its positive sloping long term moving average line.  The momentum indicator remains in its positive zone and is above its positive trigger line.  The volume indicator seems to be tracking a basic lateral path.  It is, however, below its trigger line but the trigger is still in a positive slope.  All in all, the usual indicators have gold long term rating as BULLISH.

So, we have a long term bearish trend in the P&F chart and a long term bullish rating via the usual technical indicators.  Which is going to dominate?  I guess we’ll just have to wait and see.

INTERMEDIATE TERM

Gold traded most of the week above its intermediate term moving average line and closed on Friday above the line.  I wish I could say that the line has also turned to the up side but although it is in the process of turning on Friday it only got to the horizontal level, neither up nor down.  The momentum indicator has been in its positive zone all week and remains so.  It is above its positive sloping trigger line.  As for the volume indicator, it has remained below its trigger line for weeks now and the trigger has turned downward.  Despite the weak volume action I still have to go BULLISH as far as the intermediate term rating is concerned.

SHORT TERM

There are several interesting things on the short term chart this week.  The most interesting pattern is the break through the upper wedge trend line and the subsequent action.  The move seemed to have stalled but let’s check it out versus a similar move during the first week of Nov.  although that move was not a wedge break-out the activity is very similar.  First, there is the aggressive Stochastic Oscillator.  The SO has topped out in its overbought zone and has moved below its trigger line as if heading lower to suggest a reversal of trend ahead.  BUT in Nov we had the same thing and that was just a teaser while the price broke higher on the next Monday and continued upward for some time.  The SO just ended moving sideways until its decisive reversal in early Dec.  The difference between the two periods seems to be two fold.  First, we have a previous resistance shown at this latest activity.  Also this latest activity seems to be more volatile as the daily range of activity is a lot more than the earlier period.  What this will do to the move is anyone’s guess but the Monday activity should tell us what’s what.

          

As for the usual indicators, they are quite positive.  The gold price remains above its short term positive sloping moving average line.  The momentum indicator is in its positive zone above its positive trigger line.  The one somewhat negative is the volume action.  It remains weak and below the average level of the past 15 days.  As with the intermediate term, despite the weak volume action I can only rate the short term as BULLISH.  The very short term moving average line has moved above the short term line for confirmation of the bull.

As for the immediate direction of least resistance, that would be to the up side.  Great reliance on the previous example from Nov along with the direction of the very short term moving average line causes me to go that route.  Monday is probably very important as verification of this assessment and the assessment of the short term trend.

SILVER

From time to time I throw in some hints to highlight some technical considerations on a chart.  The silver P&F chart has two such considerations that very often occur in P&F charts.  First, we see the solid blue up trending lines.  These lines show how we move the up trend line further towards the right when the action crosses below the line but DOES NOT reverse the trend.  For that we need the second criteria, the move below two previous lows.  The other interesting chart information is what is often referred to as the resistance trend lines during an up trend.  These you see as light red lines (solid or dashed).  These are drawn from the first row of Os to the left of an upside break.  Because of the wide consolidation area before the initial upside break the initial resistance line was quite a ways away from the upside action.  On the next break, at the $14 level, we can draw a closer resistance (red dash) line.  We see how well this line has done during the subsequent action.  Although these resistance lines are not perfect one would be taking extra risks one does not need when they buy in while the action is near the resistance line.  The reverse is true at support lines during down trends (the light blue line).

Just a couple of technical hints while using P&F charts.
 
          

As the P&F chart shows, we are still in a basic down trend with a projection calculated to the $11.50 level.  That’s just a guide, not a certainty.

As for the usual indicators, on the long term silver is still below its negative long term moving average line.  The momentum indicator, however, has just moved into its positive zone above its positive trigger line.  The volume indicator is still quite negative and below its negative sloping trigger line.  The best I can give the long term rating is a – NEUTRAL rating, one level above a full bear.

On the intermediate term things are still a little worse.  Silver is below its negative sloping moving average line.  The momentum indicator is still in its negative zone but has moved above its positive sloping trigger line.  The volume indicator is still negative with the indicator below its negative sloping trigger line.  The intermediate term rating is BEARISH.

On the short term things are somewhat brighter.  Silver is above its positive sloping short term moving average line.  The momentum indicator has just moved into its positive zone above a positive sloping trigger line.  The daily volume activity is somewhat neutral at the present although it does look like it wants to improve over the average for the past 15 days.  The short term rating is BULLISH.  The very short term moving average line moving above the short term line confirms the bull.

As for the direction of least resistance, the up side looks like the direction for the same reasons as for gold.

PRECIOUS METAL STOCKS

          

The Merv’s Penny Arcade Index is still acting a little worse than most of the other Merv’s or North American Indices are.  This has not yet generated into a bear signal.  It is still far from it on the long term but getting close on the intermediate term.  The action over the past few weeks has been very similar to its action at mid point in the recent bull trend.  This may just be another “step” up the latter of a major bull move or it could be the start of more difficult times for the penny stocks.  One year, one month and two weeks ago the bull market in the pennies was confirmed (the low was a few weeks earlier).  Since then the average price performance of the 30 component stocks is over 700%, this is an average of 30 stocks some of which have done a lot better while others have done a lot worse.  You need to know what’s moving and what’s not to get in on such performance.  The latest technical information and ratings for the 30 component stocks can be found in the subscriber’s section of the Precious Metals Central service.

Apart from the Penny Arcade Index which declined 0.2% on the week all other Merv’s Indices and major North American Indices were up on the week.  The short term ratings for most Indices are therefore bullish while for the intermediate and long term we still have some problems.  Although we have had a few upside weeks it still does not appear to be time to get too bullish on the precious metal stocks.  Maybe next week.

Merv’s Precious Metals Indices Table

Well, that will be it for this 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