Gold Weekly Update

Long Term – Bullish – The key resistance area’s to regain upside momentum and potential new highs are 1792 and 1804.
Medium Term Neutral/Bearish- resistance 1705-1720--support 1520-1542
Intermediate Term- Bearish NEED a close above 1630 to neutralize downtrend. Seasonal favors lower to mid March with a two week bounce due near the 25th of Feb
Resistance for this week 1592-1602 2nd tier 1611-1619
Support for this week 1556-1566 2nd tier 1539-1645

The trend remains down but gold is definitely oversold and a bounce is due.  As with the chart of the HUI and Newmont mining, we can’t eliminate the potential for gold to continue lower if support levels are violated.  The 1540-1545 area is where the 23% Fibonacci price retracement point is and so if there we’re a price probe to that area, it would favor that support would come into play.  Any price points lower than that after the 28th of the month would favor lower into the 1470-1520 range. In summary, the downtrend is not quite complete yet or at least that’s what the odds favor in time and on the medium term price charts. The bull market is not over, but 2013 is going to be a transitional year where the potential for a LIQUIDITY SQUEEZE and another debt event like 2008 is HIGH.  It’s a year where preservation of capital is going to be difficult and tricky if we’re not careful.  Remain patient and don’t get overextended.

 

YOU SHOULD NOT TAKE ANY MATERIAL posted on this BLOG AS RECOMMENDATIONS 
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. 

 King Regards