21 Jan – 22 Feb
$500 Contest
Fxprizes
February gold managed a fresh downside breakout overnight in the face of an ongoing flow of positive global economic news.
The focus of the gold market recently seems to be locked on the economic outlook and for the time being, favorable economic views have favored the bears as far as the media spin is concerned. But if that was the case the gold bulls could have garnered some lift off news of a disappointing UK growth reading overnight, but that news wasn't given a front and center standing in the early gold trade. And the disappointing home sales report of down 7.3% in December didn’t do anything to gold. It may spook the stock market however as that market is ripe for a pullback.
What we think is the most likely event is what we’ve discussed on the website and that is the selloff is due to Options expiration on Monday and the Fed Reserve Meeting coming up on the 29th and 30th and the rollover out of Feb Futures into April has traders most likely liquidating Feb and not moving into April or June at the same rate. We also mentioned the Davos meeting yesterday as a potential issue as the control boyz have a tendency to press the downside in gold at these meetings also.
When we combine these events the bears are likely setting up a washout for the anticipated buying in February for the Chinese New Year festivities that begin Feb 10th.
Asian equity markets were mixed overnight as prices might have become a little expensive in the face of whispers of profit warnings ahead of the next Chinese earnings cycle. European stock indices were given a lift in the face of IFO sentiment figures that surprised on the upside. In retrospect, the German economy posted some impressive economic stats this week and that gives hope that weaker areas of the Euro zone might be lifted by the German economy. The Euro is showing some minor strength this morning because of the German numbers and perhaps because of suggestions from Draghi that the European economy and the European financial markets have now stabilized. (Gee, who would have thought he would say that). We’ll be surprised if this stabilization remains.
GOLD CHART
All through last week we discussed the choppy and overlapping pattern on the hourly chart and how that usually favors that it’s not a trend that usually one that harbors higher prices in the intermediate term. It finally gave way this week and our longs from 1668.50 in gold were stopped out at 1674 and our long silver at 30.41 was also stopped at 31.71.
Gold is now reaching the last support area’s on the chart that exist before the 1626 lows of Jan 4th. This red line that we’re testing is an important line for the bulls but it’s also a well known technical line. Just under is our purple trend line and mini blue line in the 1643-1648 area. This is where the real last support before the lows reside and it would be a perfect flush out to take out the technicians who are watching that RED line and using that for support. If the control boyz use options ex, Fed Meeting and Feb rollover to flush out the 1625 low it would be a perfect set-up to break the back of the bulls just before the Chinese New Year that begins on Feb 10th. Thus it would set the stage for at least lower prices in anticipation for the buying that usually comes into the market.
In summary, the control boys may allow the red line at 1653-1656 to hold on Friday and allow a move back towards 1666 and then use next week for the final slaughter. We’ll have to see. But with the Fed Meeting on Tues and Wednesday, and the liquidation of Feb gold contract as it is ending (what a coincidence) it stands to reason that the savvy traders are not rolling over into the April/June contracts just yet as only masochists would want to be establishing longs before Fed meetings. In summary, we discussed all week that the choppy pattern was not a reliable upside move and it has resolved to its usual outcome. With everything coming between Monday and Wednesday its best to remain defensive on the metals. SUPPORT for the rest of today is 1652-1655 and 1642-1645 where the arrows are on the chart. Resistance is 1666-1670. It’s best to maintain a defensive posture for now.
INVATA SA TRANZACTIONEZI GRATIS PIPSI IN FOREX
21 Jan – 22 Feb
$500 Contest
Fxprizes
INVATA SA TRANZACTIONEZI GRATIS PIPSI IN FOREX
$500 Contest
Fxprizes
February gold managed a fresh downside breakout overnight in the face of an ongoing flow of positive global economic news.
The focus of the gold market recently seems to be locked on the economic outlook and for the time being, favorable economic views have favored the bears as far as the media spin is concerned. But if that was the case the gold bulls could have garnered some lift off news of a disappointing UK growth reading overnight, but that news wasn't given a front and center standing in the early gold trade. And the disappointing home sales report of down 7.3% in December didn’t do anything to gold. It may spook the stock market however as that market is ripe for a pullback.
What we think is the most likely event is what we’ve discussed on the website and that is the selloff is due to Options expiration on Monday and the Fed Reserve Meeting coming up on the 29th and 30th and the rollover out of Feb Futures into April has traders most likely liquidating Feb and not moving into April or June at the same rate. We also mentioned the Davos meeting yesterday as a potential issue as the control boyz have a tendency to press the downside in gold at these meetings also.
When we combine these events the bears are likely setting up a washout for the anticipated buying in February for the Chinese New Year festivities that begin Feb 10th.
Asian equity markets were mixed overnight as prices might have become a little expensive in the face of whispers of profit warnings ahead of the next Chinese earnings cycle. European stock indices were given a lift in the face of IFO sentiment figures that surprised on the upside. In retrospect, the German economy posted some impressive economic stats this week and that gives hope that weaker areas of the Euro zone might be lifted by the German economy. The Euro is showing some minor strength this morning because of the German numbers and perhaps because of suggestions from Draghi that the European economy and the European financial markets have now stabilized. (Gee, who would have thought he would say that). We’ll be surprised if this stabilization remains.
Gold is now reaching the last support area’s on the chart that exist before the 1626 lows of Jan 4th. This red line that we’re testing is an important line for the bulls but it’s also a well known technical line. Just under is our purple trend line and mini blue line in the 1643-1648 area. This is where the real last support before the lows reside and it would be a perfect flush out to take out the technicians who are watching that RED line and using that for support. If the control boyz use options ex, Fed Meeting and Feb rollover to flush out the 1625 low it would be a perfect set-up to break the back of the bulls just before the Chinese New Year that begins on Feb 10th. Thus it would set the stage for at least lower prices in anticipation for the buying that usually comes into the market.
In summary, the control boys may allow the red line at 1653-1656 to hold on Friday and allow a move back towards 1666 and then use next week for the final slaughter. We’ll have to see. But with the Fed Meeting on Tues and Wednesday, and the liquidation of Feb gold contract as it is ending (what a coincidence) it stands to reason that the savvy traders are not rolling over into the April/June contracts just yet as only masochists would want to be establishing longs before Fed meetings. In summary, we discussed all week that the choppy pattern was not a reliable upside move and it has resolved to its usual outcome. With everything coming between Monday and Wednesday its best to remain defensive on the metals. SUPPORT for the rest of today is 1652-1655 and 1642-1645 where the arrows are on the chart. Resistance is 1666-1670. It’s best to maintain a defensive posture for now.
The focus of the gold market recently seems to be locked on the economic outlook and for the time being, favorable economic views have favored the bears as far as the media spin is concerned. But if that was the case the gold bulls could have garnered some lift off news of a disappointing UK growth reading overnight, but that news wasn't given a front and center standing in the early gold trade. And the disappointing home sales report of down 7.3% in December didn’t do anything to gold. It may spook the stock market however as that market is ripe for a pullback.
What we think is the most likely event is what we’ve discussed on the website and that is the selloff is due to Options expiration on Monday and the Fed Reserve Meeting coming up on the 29th and 30th and the rollover out of Feb Futures into April has traders most likely liquidating Feb and not moving into April or June at the same rate. We also mentioned the Davos meeting yesterday as a potential issue as the control boyz have a tendency to press the downside in gold at these meetings also.
When we combine these events the bears are likely setting up a washout for the anticipated buying in February for the Chinese New Year festivities that begin Feb 10th.
Asian equity markets were mixed overnight as prices might have become a little expensive in the face of whispers of profit warnings ahead of the next Chinese earnings cycle. European stock indices were given a lift in the face of IFO sentiment figures that surprised on the upside. In retrospect, the German economy posted some impressive economic stats this week and that gives hope that weaker areas of the Euro zone might be lifted by the German economy. The Euro is showing some minor strength this morning because of the German numbers and perhaps because of suggestions from Draghi that the European economy and the European financial markets have now stabilized. (Gee, who would have thought he would say that). We’ll be surprised if this stabilization remains.
GOLD CHART
All through last week we discussed the choppy and overlapping pattern on the hourly chart and how that usually favors that it’s not a trend that usually one that harbors higher prices in the intermediate term. It finally gave way this week and our longs from 1668.50 in gold were stopped out at 1674 and our long silver at 30.41 was also stopped at 31.71.Gold is now reaching the last support area’s on the chart that exist before the 1626 lows of Jan 4th. This red line that we’re testing is an important line for the bulls but it’s also a well known technical line. Just under is our purple trend line and mini blue line in the 1643-1648 area. This is where the real last support before the lows reside and it would be a perfect flush out to take out the technicians who are watching that RED line and using that for support. If the control boyz use options ex, Fed Meeting and Feb rollover to flush out the 1625 low it would be a perfect set-up to break the back of the bulls just before the Chinese New Year that begins on Feb 10th. Thus it would set the stage for at least lower prices in anticipation for the buying that usually comes into the market.
In summary, the control boys may allow the red line at 1653-1656 to hold on Friday and allow a move back towards 1666 and then use next week for the final slaughter. We’ll have to see. But with the Fed Meeting on Tues and Wednesday, and the liquidation of Feb gold contract as it is ending (what a coincidence) it stands to reason that the savvy traders are not rolling over into the April/June contracts just yet as only masochists would want to be establishing longs before Fed meetings. In summary, we discussed all week that the choppy pattern was not a reliable upside move and it has resolved to its usual outcome. With everything coming between Monday and Wednesday its best to remain defensive on the metals. SUPPORT for the rest of today is 1652-1655 and 1642-1645 where the arrows are on the chart. Resistance is 1666-1670. It’s best to maintain a defensive posture for now.
YOU SHOULD NOT TAKE ANY MATERIAL posted on this BLOG AS RECOMMENDATIONS
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
