I haven’t done a post on Gold since this one…Anyway here it goes…
First the weekly chart on to your left; you can see we’ve had one steep rise in gold and the dotted orange trend line is in for some serious testing!!!! Also I have put a small dashed white TL at approx 1175 (based on closing price), any close below this would put pressure on gold to test 1140 and perhaps 1100 too…for starters. Finally we are having a negative divergence on the weekly chart…Price will confirm it by failing to hold to previous Highs and make a new lower high and then perhaps a lower low too???
The daily chart above to your right also shows a steep parabolic rise we have seen in last three and a half months...now is falling from overbought levels…and heading to test the neckline of the inverse H&S and the 50 periods moving average! It would pay to watch the price action at 1150/70 coz any weakness there would result in sharp $50 drop!
PS: If you are a trader who trades on technicals, then I would suggest, trade what you see on your charts and don’t worry about gold/equity relationship…coz getting into that will only confuse you further!!!!
To early to go with negative divergences but a close below 1155 should give warning. Inverted head n shoulder in daily chart achieved its target and now with neckline ard 1160 levels - a test to neckline is normal procedure. So, a for termination of current uptrend would strength once closes below $ 1155. A close below $ 1060 would signal double top with target $ 860 but too early for that decision to be taken. Buying with closing stop loss of $ 1155 for target $ 1350, is my view-coz buy every 8 to 10 % dip in the bull market for another 8 to 10 % move abv the earlier. high.
ReplyDelete1150 is the level by Tuesday
ReplyDeleteManoj Chopra
ReplyDeleteTrue...too early to go with neg div...but the truth is...its there..and its efficacy will be measured by Price confirming it...
There are two things we can do here....
1. Sell the longs and wait for a rentry like you mentioned...
2. Or simply play for some small shorts....till you get confirmation for something more sinister...
Gold....what the heck I would prefer to load tonnes of silver on dips....!!!
Cheers!!!!