INTRA-DAY NEWSLETTER
Feb 7 2013
Gold looks more and more likely to
break through the triangle on the upside.
Day Trade
I'm long in april mini gold at 1670.50 My stop
is 1667.50 be careful
Gold prices might have outperformed the fundamental news flow overnight, as Chinese equity markets were tripped up by talk that the government might be poised to dial up inflation fighting measures again in luxury goods and in certain real estate sectors. In fact, gold was able to claw above the prior session's high, in the face of news that Chinese 2012 gold production might have posted an annual gain of just under 12%. Gold saw some lift from Japanese players overnight, but the rise in gold prices has supposedly resulted in a wave of fresh sales to capture the pulse up move.
Then a major flush out occurred in the New York market all the way down to 1664 and then prices reversed again and we have moved up to 1680.
All things considered, gold is in a wild swinging wedge formation.
Additional news of discouraging Indian government gold import policy talk suggests that the gold market doubts the Indian Government's capacity to alter Indian investment interest in gold.
With Turkish officials overnight predicting an upcoming decline in gold exports, due to slackening foreign demand, that could undermine gold prices, but with US officials also looking into the gold for gas exchanges with Iran, that potentially negative news item could actually switch back into a supportive situation.
Chinese shares were weaker overnight after reports of a Chinese advertising ban on luxury items rekindled fears of a return to inflation fighting by the PBOC. European shares were choppy to start as a looming ECB meeting and less than impressive European earnings news has left the market somewhat flat footed.
GOLD CHART
Gold remains in a price wedge and another wild swing down today took place. Today’s low at 1664 in april gold was an exact touch of our red downtrend line. Prices ran from 1680 to 1664 in another COMEX flushout in New York. Prices then reversed and has now moved back up near 1680.
The choppy and overlapping pattern is always dangerous and as long as we are inside this wedge, the next trend that is about to develop can still go either way. Resistance is the 1684-1687 area at the mini blue line and then 1695-1698. A move above 1700 would favor the 1710-1715 area. On the other side a close below 1655 would favor a test of the 1640 area. Short term cycles suggest the next two week trend gets underway between today and next Wednesday. Once in place it should run two weeks. The Chinese New Year begins next week and is usually a bullish seasonal for gold. In summary, we don’t like the choppy and overlapping pattern but a move above these resistance area’s would favor the upside. A close below 1655 would favor lower.
INTRA-DAY NEWSLETTER
Feb 7 2013
Gold looks more and more likely to
break through the triangle on the upside.
Day Trade
I'm long in april mini gold at 1670.50 My stop
is 1667.50 be careful
Gold prices might have outperformed the fundamental news flow overnight, as Chinese equity markets were tripped up by talk that the government might be poised to dial up inflation fighting measures again in luxury goods and in certain real estate sectors. In fact, gold was able to claw above the prior session's high, in the face of news that Chinese 2012 gold production might have posted an annual gain of just under 12%. Gold saw some lift from Japanese players overnight, but the rise in gold prices has supposedly resulted in a wave of fresh sales to capture the pulse up move.
Then a major flush out occurred in the New York market all the way down to 1664 and then prices reversed again and we have moved up to 1680.
All things considered, gold is in a wild swinging wedge formation.
Additional news of discouraging Indian government gold import policy talk suggests that the gold market doubts the Indian Government's capacity to alter Indian investment interest in gold.
With Turkish officials overnight predicting an upcoming decline in gold exports, due to slackening foreign demand, that could undermine gold prices, but with US officials also looking into the gold for gas exchanges with Iran, that potentially negative news item could actually switch back into a supportive situation.
Chinese shares were weaker overnight after reports of a Chinese advertising ban on luxury items rekindled fears of a return to inflation fighting by the PBOC. European shares were choppy to start as a looming ECB meeting and less than impressive European earnings news has left the market somewhat flat footed.
GOLD CHART
Gold remains in a price wedge and another wild swing down today took place. Today’s low at 1664 in april gold was an exact touch of our red downtrend line. Prices ran from 1680 to 1664 in another COMEX flushout in New York. Prices then reversed and has now moved back up near 1680.
The choppy and overlapping pattern is always dangerous and as long as we are inside this wedge, the next trend that is about to develop can still go either way. Resistance is the 1684-1687 area at the mini blue line and then 1695-1698. A move above 1700 would favor the 1710-1715 area. On the other side a close below 1655 would favor a test of the 1640 area. Short term cycles suggest the next two week trend gets underway between today and next Wednesday. Once in place it should run two weeks. The Chinese New Year begins next week and is usually a bullish seasonal for gold. In summary, we don’t like the choppy and overlapping pattern but a move above these resistance area’s would favor the upside. A close below 1655 would favor lower.
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
