Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Who is Spreading the Virus? UK Coronavirus 2nd Wave Analysis - 30th Sep 20
Gold And Silver Follow Up & Future Predictions For 2020 & 2021 – Part II - 30th Sep 20
The Only Thing Systematic Is The Destruction Of America - 29th Sep 20
Fractional-Reserve Banking Is The Elephant In The Room - 29th Sep 20
Gold And Silver Follow Up & Future Predictions For 2020 & 2021 – Part I - 29th Sep 20
Stock Market Short-term Reversal - 29th Sep 20
How Trump co-opted the religious right and stacked the courts with conservatives - 29th Sep 20
Which RTX 3080 GPU to BUY and AVOID! Nvidia, Asus, MSI , Palit, Gigabyte, Zotac, MLCC vs POSCAPS - 29th Sep 20
Gold, Silver & HUI Stocks Big Pictures - 28th Sep 20
It’s Time to Dump Argentina’s Peso - 28th Sep 20
Gold Stocks Seasonal Plunge - 28th Sep 20
Why Did Precious Metals Get Clobbered Last Week? - 28th Sep 20
Is The Stock Market Dow Transportation Index Setting up a Topping Pattern? - 28th Sep 20
Gold Price Setting Up Just Like Before COVID-19 Breakdown – Get Ready! - 27th Sep 20
UK Coronavirus 2nd Wave SuperMarkets Panic Buying 2.0 Toilet Paper , Hand Sanitisers, Wipes... - 27th Sep 20
Gold, Dollar and Rates: A Correlated Story - 27th Sep 20
WARNING RTX 3080 AIB FLAWED Card's, Cheap Capacitor Arrays Prone to Failing Under Load! - 27th Sep 20
Boris Johnson Hits Coronavirus Panic Button Again, UK Accelerting Covid-19 Second Wave - 25th Sep 20
Precious Metals Trading Range Doing It’s Job to Confound Bulls and Bears Alike - 25th Sep 20
Gold and Silver Are Still Locked and Loaded… Don't be Out of Ammo - 25th Sep 20
Throwing the golden baby out with the covid bath water - Gold Wins - 25th Sep 20
A Look at the Perilous Psychology of Financial Market Bubbles - 25th Sep 20
Corona Strikes Back In Europe. Will It Boost Gold? - 25th Sep 20
How to Boost the Value of Your Home - 25th Sep 20
Key Time For Stock Markets: Bears Step Up or V-Shaped Bounce - 24th Sep 20
Five ways to recover the day after a good workout - 24th Sep 20
Global Stock Markets Break Hard To The Downside – Watch Support Levels - 23rd Sep 20
Beware of These Faulty “Inflation Protected” Investments - 23rd Sep 20
What’s Behind Dollar USDX Breakout? - 23rd Sep 20
Still More Room To Stock Market Downside In The Coming Weeks - 23rd Sep 20
Platinum And Palladium Set To Surge As Gold Breaks Higher - 23rd Sep 20
Key Gold Ratios to Other Markets - 23rd Sep 20
Watch Before Upgrading / Buying RTX 3000, RDNA2 - CPU vs GPU Bottlenecks - 23rd Sep 20
Online Elliott Wave Markets Trading Course Worth $129 for FREE! - 22nd Sep 20
Gold Price Overboughtness Risk - 22nd Sep 20
Central Banking Cartel Promises ZIRP Until at Least 2023 - 22nd Sep 20
Stock Market Correction Approaching Initial Objective - 22nd Sep 20
Silver Bulls Will Be Handsomely Rewarded - 21st Sep 20
Fed Will Not Hike Rates For Years. Gold Should Like It - 21st Sep 20
US Financial Market Forecasts and Elliott Wave Analysis Resources - 21st Sep 20
How to Avoid Currency Exchange Risk during COVID - 21st Sep 20
Crude Oil – A Slight Move Higher Has Not Reversed The Bearish Trend - 20th Sep 20
Do This Instead Of Trying To Find The “Next Amazon” - 20th Sep 20
5 Significant Benefits of the MT4 Trading Platform for Forex Traders - 20th Sep 20
A Warning of Economic Collapse - 20th Sep 20
The Connection Between Stocks and the Economy is not What Most Investors Think - 19th Sep 20
A Virus So Deadly, The Government Has to Test You to See If You Have It - 19th Sep 20
Will Lagarde and Mnuchin Push Gold Higher? - 19th Sep 20
RTX 3080 Mania, Ebay Scalpers Crazy Prices £62,000 Trollers Insane Bids for a £649 GPU! - 19th Sep 20
A Greater Economic Depression For The 21st Century - 19th Sep 20
The United Floor in Stocks - 19th Sep 20
Mobile Gaming Market Trends And The Expected Future Developments - 19th Sep 20
The S&P 500 appears ready to correct, and that is a good thing - 18th Sep 20
It’s Go Time for Gold Price! Next Stop $2,250 - 18th Sep 20
Forget AMD RDNA2 and Buy Nvidia RTX 3080 FE GPU's NOW Before Price - 18th Sep 20
Best Back to School / University Black Face Masks Quick and Easy from Amazon - 18th Sep 20
3 Types of Loans to Buy an Existing Business - 18th Sep 20
How to tell Budgie Gender, Male or Female Sex for Young and Mature Parakeets - 18th Sep 20
Fasten Your Seatbelts Stock Market Make Or Break – Big Trends Ahead - 17th Sep 20
Peak Financialism And Post-Capitalist Economics - 17th Sep 20
Challenges of Working from Home - 17th Sep 20
Sheffield Heading for Coronavirus Lockdown as Covid Deaths Pass 432 - 17th Sep 20
What Does this Valuable Gold Miners Indicator Say Now? - 16th Sep 20
President Trump and Crimes Against Humanity - 16th Sep 20
Slow Economic Recovery from CoronaVirus Unlikely to Impede Strong Demand for Metals - 16th Sep 20
Why the Knives Are Out for Trump’s Fed Critic Judy Shelton - 16th Sep 20
Operation Moonshot: Get Ready for Millions of New COVAIDS Positives in the UK! - 16th Sep 20
Stock Market Approaching Correction Objective - 15th Sep 20
Look at This Big Reminder of Dot.com Stock Market Mania - 15th Sep 20
Three Key Principles for Successful Disruption Investors - 15th Sep 20
Billionaire Hedge Fund Manager Warns of 10% Inflation - 15th Sep 20
Gold Price Reaches $2,000 Amid Dollar Depreciation - 15th Sep 20
GLD, IAU Big Gold ETF Buying MIA - 14th Sep 20
Why Bill Gates Is Betting Millions on Synthetic Biology - 14th Sep 20
Stock Market SPY Expectations For The Rest Of September - 14th Sep 20
Gold Price Gann Angle Update - 14th Sep 20
Stock Market Recovery from the Sharp Correction Goes On - 14th Sep 20
Is this the End of Capitalism? - 13th Sep 20
The Silver Big Prize - 13th Sep 20
U.S. Shares Plunged. Is Gold Next? - 13th Sep 20
Why Are 7,500 Oil Barrels Floating on this London Lake? - 13th Sep 20
Sheffield 432 Covid-19 Deaths, Last City Centre Shop Before Next Lockdown - 13th Sep 20
Biden or Trump Will Keep The Money Spigots Open - 13th Sep 20
Gold And Silver Up, Down, Sideways, Up - 13th Sep 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

Gold Projects Bullish Trend to $1215

Commodities / Gold & Silver Jul 19, 2008 - 01:49 PM GMT

By: Merv_Burak

Commodities

Best Financial Markets Analysis ArticleGold has basically been on a roll for over a month, maybe it's time for a little rest. At this point it looks like no more than a rest but let's go through the routine.

GOLD : LONG TERM - I've been away for a few weeks so this week is sort of a “catch-up” week. The long term P&F Chart shows an upside break-out with a projection to the $1215 level. That would put us into new all time high territory and could cause the price to continue towards that long held, very long term, projection to the $1600 mark.


Nothing in the news or charts suggests that the projections are way out of line. Of course, gold will not go straight up to those levels, there will be reversals along the way, but that's what it looks like from the P&F chart point of view.

From the normal charts and indicators things look good also. Using the daily chart indicators, gold is above its long term moving average line and the line slope is upwards. The long term momentum indicator remains in its positive zone, where it has been for years, and continues above its positive trigger line. The volume indicator is again at new all time highs and remains above its positive trigger line. From these indicators the only rating I can give the long term is a BULLISH rating.

INTERMEDIATE TERM

The picture on the intermediate term, although quite positive, is not as clear as the long term. We see the upside break-out through the resistance level but the break was not all that strong. There is a resistance in the $960 to $990 level from the early March action that seems to be causing the move some problem. Maybe a little rest will do it but that remains to be seen. The price of gold is above its positive moving average line and as long as it stays that way there is no real worry. The momentum indicator is confirming the price move but is not showing any extra strength behind the move.

A strong move should have seen the indicator at least above the 60% level. The indicator has dropped below its trigger line but the trigger is still pointing slightly upwards. The volume indicator is still the strongest indicator and is above its positive trigger line. Despite the slight weakness in the momentum indicator I must still rate the intermediate term as BULLISH . Maybe there will be a change next week but let's wait for it, it may not come.

SHORT TERM

Since turning up in mid-June, and especially since the very short term moving average line (8 DMAW) crossed to the up side, the short term moving average line (15 DMAW) has kept you positive, short term wise. Now, one might wonder if the short term upside move may be ending. It is starting to look iffy but all is not yet lost. Gold is sitting on top of its positive sloping moving average line and the momentum indicator is still in its positive zone. Momentum, however, is heading lower and is below its trigger line although the trigger is still slightly positive. The daily volume action has been improving on the up side and diminishing on the down side. Since reversing from its overbought zone a few days back gold has been moving lower but not at any desperation rate. For now the short term is still rated as BULLISH but that may change with a couple of more negative days.

The immediate term direction of the action looks to be to the down side. Gold is already below its very short term moving average line although the line remains just slightly positive. The more aggressive Stochastic Oscillator (SO) is moving lower and is in its negative zone below its negative trigger line. The direction of motion is to the down side and that is the immediate term direction, until verified otherwise.

I am not an Elliott Wave person and confess not to understand the technique (although I did have to study it many, many years ago). It just looks like too much work for a lazy guy. However, for you Elliott Wave people out there, looking at the action since mid-June, have we completed a short term bull move and are into a bear phase? Or looking at the action since late April-early May, are we only at the second of the three up legs of a bull move? Youth wants to know. I much prefer my FAN Principle, when I have it. The Bullish Decelerating Fan confirmed a reversal in mid-June. I call it a Bullish Decelerating Fan because its completion and confirmation leads to a bull move and from Fan one to Fan two to Fan three the negative move is getting weaker and weaker (decelerating) from a common apex point.

SILVER

As the chart of silver shows, there is really very little difference between the recent action in silver and that of gold. The major difference, as I see it, is that the actions of the momentum and volume indicators are weaker here than for gold, even though gold momentum was not all that great. One can just read the gold review and apply it to silver for now.

Merv's Precious Metals Indices Table

Catching up will continue next week with a more detailed look at the stock Indices.

By Merv Burak, CMT
Hudson Aero/Systems Inc.
Technical Information Group
for Merv's Precious Metals Central

For DAILY Uranium stock commentary and WEEKLY Uranium market update check out my new Technically Uranium with Merv blog at http://techuranium.blogspot.com .

During the day Merv practices his engineering profession as a Consulting Aerospace Engineer. Once the sun goes down and night descends upon the earth Merv dons his other hat as a Chartered Market Technician ( CMT ) and tries to decipher what's going on in the securities markets. As an underground surveyor in the gold mines of Canada 's Northwest Territories in his youth, Merv has a soft spot for the gold industry and has developed several Gold Indices reflecting different aspects of the industry. As a basically lazy individual Merv's driving focus is to KEEP IT SIMPLE .

To find out more about Merv's various Gold Indices and component stocks, please visit http://preciousmetalscentral.com . There you will find samples of the Indices and their component stocks plus other publications of interest to gold investors.

Before you invest, Always check your market timing with a Qualified Professional Market Technician

Merv Burak Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

DWIGHT
20 Jul 08, 03:12
Gold will continue its run for this reason

The fact is without raising taxes and rebuilding a serious manufactoring base here and stop outsorceing, even super interest rate rises will not protect the dollar in the 3-5 year term. without growth foreign investors will not keep investing in our economy. we are in such a crises right now the fed would risk a collapse in the economy just to try and save the dollar in the short run by boosting rates to levels needed.in the short run they have a currency to go to but soon europe will feel effects , but not nearly as bad as the us. the middle class is the only people who know what is really going on. there is alot of forclosures coming, i am going to be walking away from my second house, i bought it for 30k and borrowed at 318k and it does me no good to keep it, i bought gold and silver with the extra money and dont need credit anymore since my primary house is paid off and my gold is worth 2x what i paid. if the public gets smart (by that time gold will have reached 1600) they will eventually start beliving and thats when ill sell some.never fear a super drop in gold like the stock market, gold cannot go to zero and stocks can.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules