Gold climbed back to 1777 but was halted right at resistance at the 200 hour moving average and in line with the jobs report, the market used it as an opportunity to sell the market back down to the 1766 area. What we think is developing is this is a bounce that will not make new highs, but will peak with the next short term cycle and will pull back into the end of October to complete the seasonal October downtrend and will set up for a strong November. Today’s failure at this price area now puts the 200 hour and the blue line as important resistance. The market will probably spin the jobs report as improving and will begin to circulate concerns that the stimulus is not required anymore. We view that as a sideshow and we think the job numbers and the so called economic improvement at best has weak legs. Still after a printing up 5 or 6 trillion dollars and an election coming up, it stands to reason that a slight improvement should be expected. Discussing on whether its getting better or worse is like politics and religion right now and depends on which side of the fence you’re on. For us, the Charts failure at 1777 might get one more attempt at that area, but our overall view now is for the market to peak in the 1777-1787 area and get one more leg to the downside going into the end of October. The ideal day for a high is Sept 15th-16th (plus or minus 72 hours). That means the “window” opens on Friday and runs into next week. In summary, we’ve completed the first pullback leg for October, and we suspect there’s one more to go into the end of the month. From there, a November rally will take place. Resistance is 1771-1774 for the remainder of the day and support is the 1761-1765 area. We need a close above 1775 in order for the bulls to have a more firm hold on the markets.
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TO BUY OR SELL GOLD OR ANY OTHER INVESTMENT VEHICLE LISTED.
TO BUY OR SELL GOLD OR ANY OTHER INVESTMENT VEHICLE LISTED.
Do your own due diligence.
No one knows tomorrow's price or circumstance.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
King Regards
