Wednesday, February 23, 2011
Updates - Gold Breakout - Going Strong
Gold touched $1417 on its way towards the targets as noted below. RSI on the daily chart is in the overbought zone and there may be a some cooling in a few days before starting to go up again.
Monday, February 21, 2011
Updates - Gold Breakout
As noted before, Gold was poised for a breakout above $1355, its currently trading at $1408 and should go up to its first target $1422 and then $1430. The RSI indicator is back in the overbought territory which would reduce the rate of increase and may even lead to small correction back to its support $1390 but only after touching the upside targets. The long term upward channel for trading still holds. The unrest in Northern Africa and Middle-East also is one of the reasons for this steep rise. This unrest has led to an increase in the prices of the Gold, Silver, Treasury Bonds and Crude Oil. Silver has outperformed Gold in the percentage rise and it has moved it all time high ($34 / oz) earlier than Gold. Also, the Gold / Silver exchange ratio has been making new lows.
Monday, February 7, 2011
Updates - GOLD in Downtrend - Is it poised for a breakout?
Gold has spent a lot of time in the current range $1326-$1355 which is pointing towards that its forming a bottom here. But as you can see in the graph below, it always comes down before it 12 period EMA before breaking out to higher levels. It has happened at 3 past breakout occasions and can be expected to repeat it this time, making it poised to come down in a move ($1325-$1330) giving an opportunity to cover the shorts and load up for the upmove.
Thursday, February 3, 2011
Updates - GOLD in Downtrend
A day of unexpected gain in Gold ($25 rally from 1330 to 1355). It took gold out of the downtrending trading zone but it still faces $1355-$1360 zone resistance. It is currently trying to stay afloat outside the downtrending trading zone but there is a high probability that it would come back into the zone for a downturn. In an unexpected case, if it takes out $1360 with a strong rally, it would achieve higher targets. We would have to wait and watch to see if that happens.
Partial profit booking & keeping trailing stop loss is always advisable (1325-1330 zone was to book profits)
Wednesday, February 2, 2011
Tuesday, February 1, 2011
Saturday, January 29, 2011
Updates - Gold Breakout - Going Strong
Gold touched $1417 on its way towards the targets as noted below. RSI on the daily chart is in the overbought zone and there may be a some cooling in a few days before starting to go up again.
Monday, February 21, 2011
Updates - Gold Breakout
As noted before, Gold was poised for a breakout above $1355, its currently trading at $1408 and should go up to its first target $1422 and then $1430. The RSI indicator is back in the overbought territory which would reduce the rate of increase and may even lead to small correction back to its support $1390 but only after touching the upside targets. The long term upward channel for trading still holds. The unrest in Northern Africa and Middle-East also is one of the reasons for this steep rise. This unrest has led to an increase in the prices of the Gold, Silver, Treasury Bonds and Crude Oil. Silver has outperformed Gold in the percentage rise and it has moved it all time high ($34 / oz) earlier than Gold. Also, the Gold / Silver exchange ratio has been making new lows.
Monday, February 7, 2011
Updates - GOLD in Downtrend - Is it poised for a breakout?
Gold has spent a lot of time in the current range $1326-$1355 which is pointing towards that its forming a bottom here. But as you can see in the graph below, it always comes down before it 12 period EMA before breaking out to higher levels. It has happened at 3 past breakout occasions and can be expected to repeat it this time, making it poised to come down in a move ($1325-$1330) giving an opportunity to cover the shorts and load up for the upmove.
Thursday, February 3, 2011
Updates - GOLD in Downtrend
A day of unexpected gain in Gold ($25 rally from 1330 to 1355). It took gold out of the downtrending trading zone but it still faces $1355-$1360 zone resistance. It is currently trying to stay afloat outside the downtrending trading zone but there is a high probability that it would come back into the zone for a downturn. In an unexpected case, if it takes out $1360 with a strong rally, it would achieve higher targets. We would have to wait and watch to see if that happens.
Partial profit booking & keeping trailing stop loss is always advisable (1325-1330 zone was to book profits)
Wednesday, February 2, 2011
Why is $1260 a very good support for Gold?
If Gold were to come down below $1300, it should take support near $1260 - Because that is the 23.2% retracement level (Fibonacci) for its rise from $700 to $1430. Fibonacci Retracement levels generally act as excellent supports (23.6%, 38.2%, 50%, 61.2%).
Tuesday, February 1, 2011
Updates - GOLD in Downtrend
Day Range - 1323-1345; Could have been shorted again for some gains. Currently trading near the upper edge of downtrend.
Monday, January 31, 2011
Updates - GOLD in Downtrend
Gold opened around $1345 and came down to $1322 before recovering later. Good support zone around $1320s. It is still following the down-wave. Can be shorted again when it comes near $1340s.
Saturday, January 29, 2011
GOLD in Downtrend
Gold is currently following a down-cycle as depicted in the chart. $1310 seems to be a very good support but on Monday (Jan - 31 - 2011) if it breaks the support, its a good candidate to short for a target of $1295 and the next target of $1265.
Friday, it took support at $1310 and rallied to $1346 before coming down to $1335.
No comments:
Post a Comment