October 07, 2011
Scenario for today
Elliott: flat correction up 1658.04
Currently uptrend should end around 1660.88 - 1660.42 area. A correction down to below 1637.24 is expected. A rise above 1669.38 will abort the expected correction.
Warning: Imminent end of bullish move
Gold resistance on Friday is 1659-1669.............and 1680-1692..
Gold is trying to move back to the middle green line in the 1700 area on a bounce. The move has been very choppy and overlapping. The big question is whether the low is in place. The dotted white trend line has been added to show the support we held at ---- but ideally --- the lower green channel line was our initial expectation and it still could be so if price gets rejected at the 1700-1730 area and then turns back down under it. IF this is the case and the low has not been made yet --- odds favor the peak should develop next week right around that middle green trend line.
October 06, 2011
Gold rose during the Wednesday session as the market continues to base around the $1,600 mark. The movement suggests that we are forming a fairly substantial support area in the neighborhood, and that the next move is probably up from here. However, we need to see a solid break above the $1,650 level to be convinced at this point. Also, with Non-Farm Payroll being released on Friday, this market could be skittish until then. We are net buyers of gold, and never sell it.
Elliott: flat correction up 1658.04
It should test 1677.80 area after which a sell off down to 1610.67 or extended to 1580.26 area is expected.
Warning: Harami
It should test 1677.80 area after which a sell off down to 1610.67 or extended to 1580.26 area is expected.
Warning: Harami
Gold Technical Analysis 6th October 2011. Beautiful Thursday.
Been quite a day, predictable profits from a predictable gold consolidation mode. Note: Always keep note of fundamental announcements, you don’t want to be finished by a bull or bear trap.
To those who traded with me online over the past few days, hope you enjoy your profits (and converted them into physical gold/silver instead of hanging on to this paper confidence game). This post is dedicated to you all.
Read on to understand the Fate of Gold for the Short-Term
Gold once again has a high probability to travel up and hit the top of the consolidation line before it comes back down. This is like pin-ball. However do be careful, an agreement and dateline for the Greek situation can always be reached and this will cause gold to most likely rush up. See the 1st graph.
If it breaks 1660 convincingly, it will rush to perhaps 1720 before another consolidation.
October 05, 2011
The play for gold currently is rather predictable, as I said before it is in a consolidation mode. Once it hits the upper resistance, go short, and once it hits the lower support, go long. Been profiting that way the last few days.
Read on!
Right now we can see there might be a maximum of another 40 bucks, then you should go long again. Nothing too fanciful, here.
October 04, 2011
Scenario for today
Elliott: common flat correction up 1677.53
Uptrend is still intact in a triangle configuration. It should continue to rally to 1677.33 or 1676.13 if support around 1647.33 hold. After which a pullback to 1647.33 - 1638.64 zone is possible.
Uptrend is still intact in a triangle configuration. It should continue to rally to 1677.33 or 1676.13 if support around 1647.33 hold. After which a pullback to 1647.33 - 1638.64 zone is possible.
Warning: Imminent end of bullish move
The outlook for gold remains generally to the upside, however, we still expect volatility to continue to dominate gold prices, and that could still weigh down on gold prices, but overall, our general outlook for gold prices remains to the upside.
Traders will be following the Federal Reserve Bank’s Chairman, Ben Bernanke before the Joint Economic Committee, and markets will be focused on what Bernanke has to say.
October 03, 2011
While below 1623.45 or 1623.76 it could fall towards below 1606.82 or 1590.18. After which a corrective/consolidation activity is expected to 1632.07 zone.
Gold prices extended the drop last week, as rising risk aversion in markets continued to boost demand for lower yielding assets including the U.S. dollar, which put gold prices under negative pressure, especially amid rising volatility levels in markets, which dampened demand for gold as a safe haven.
The mounting fears from the European debt crisis and the looming default that is facing Greece boosted demand for lower yielding assets including the U.S. dollar, and while that usually would support gold prices, yet traders opted to stay away from gold, as recent volatility in gold prices diminished its appeal as a safe haven, which weighed down heavily on gold prices last week.
Greece and the European debt crisis will continue to be one of the major highlights of the week, as speculations and fears continue to mount over the outlook of the European debt crisis, as European countries continue to vote for expanding the European Financial Stability Facility (EFSF).
Still, the fear of recession is evident and we hope that the data from this week can ease the pressure with the dollar still enjoying the upper hand. The important data are from the United States, where most of markets’ focus will turn to Friday’s infamous jobs report, but before that and specifically on Thursday, traders will be focused on the European Central Bank’s decision on interest rates amid the controversy that surrounds the decision, where some analysts believe the ECB should cut rates, while last week’s increase in inflation to 3% could stop the ECB from easing monetary policy.
We continue to expect that gold prices will rise over the coming period, however, we also expect volatility to continue to dominate gold prices, and that could push gold prices lower as well.
