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
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 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 Trades Sideways Amidst Continuing Bearish Trend

Commodities / Gold & Silver Nov 09, 2008 - 08:27 AM GMT

By: Merv_Burak


Best Financial Markets Analysis ArticleHaving been away last week didn't seem to have made much difference. Gold is just about where it was when last I reviewed it here two weeks ago. The best that can be said is that it is building strength while moving in a basic lateral direction.

GOLD : LONG TERM - Since I last showed the long term P&F chart of gold in my 2008-10-17 commentary it had made a move to lower levels and then moved in a sideways path. It has formed a strong resistance at the $765 level so a move to $780 would be an upside break. It might also be a reversal to the bull as the down trend line is very close to that point.

It depends upon any further sideways movement prior to a break. Such a break, should it happen, would project to at least the $870 level, which would not indicate a very strong move. However, a move below the $705 level might indicate a bear trend continuation towards the present projections of $630 then $480. We'll just have to wait and see which way the wind is blowing.

As for the normal indicators, gold remains below its negative sloping moving average line and the momentum indicator remains in its negative zone just a shade below its negative sloping trigger line. The volume indicator is making new lows showing greater weakness than either the price or momentum. All in all, the long term rating remains BEARISH .


The chart clearly shows a bearish trend of lower highs followed by lower lows. Gold is quite a distance below its negative sloping moving average line. The volume indicator (not shown) is also into new lows below its negative sloping trigger line. The momentum indicator is also in its negative zone but is just above its trigger line attempting to move higher. The trigger is still, however, pointing downward. One positive in this picture is the location of the momentum indicator. While the price and volume have both moved into new low levels recently the momentum indicator remained above its previous low giving us a mild positive divergence. We'll just have to see how this develops. In the mean time, based upon the indicators as they are, the rating must remain BEARISH .


We're getting somewhat of a mixed picture from the short and very short term indicators. Gold has basically been moving sideways for the past two weeks but the indicators are all over the place. First, gold has been above and below its short term moving average line but the line remains in a negative slope. The very short term moving average line seemed to have bottomed out and appeared to be attempting to cross the short term line to the up side. However, the attempt has so far failed and the very short term line remains just a hair below the short term line. The short term momentum indicator, however, has been moving basically in an upward direction and remains above its positive sloping trigger line.

However, it still resides inside its negative zone. The daily volume action has not been impressive at all. Over the past few months it has remained mostly below its 50 day moving average line. This indicates a volume action that is getting fewer and fewer daily trades although the trend is not that noticeable. Although the momentum indicator has made a new short term movement high this past week (but still in the negative zone) the price could not breach its previous high. Will the price pull the momentum down with it or will the momentum strength pull the price up with it? We'll see this week. For now there remains only one rating for the short term and that is the BEARISH rating.

As for the direction of least resistance, the aggressive Stochastic Oscillator (SO) is suggesting very short term weakness by already moving below its previous lows unlike the price or short term momentum. The direction of least resistance therefore appears to be to the down side.


Since reaching its high in March silver has been a poor performer. Its latest projection is still to the $6.00 mark. This is really an average between two projections from its March to July consolidation period. One projection was to $5.50 while the other one was to $6.50, so I just took an average. Interesting to note that the projection calls for a further drop in silver price by 40% while at the same time the $480 projection for gold calls for a 35% drop in price. Close enough to consider both as equivalent projections.

There is nothing in the indicators different from that of gold. Price below negative moving average lines, momentum in the negative zone but showing a slight positive divergence and the daily activity in volume continuing to be weak and below its 50 day average volume. So, whatever the ratings were for gold could apply equally to silver. 


Over the past few commentaries I have been showing you charts of the average performances of a sector in the precious metals. Today we look in on the Merv's Qual-Silver Index for the average performance of the 10 largest silver stocks.

Over a period of just over 6 years the average price of this sector increased by a factor of over 17 times. In just ½ of a year the reversal cut that gain by three quarters. When the bear growls you'd better run, and fast. One can easily see the topping process for over a year with the momentum indicator getting weaker and weaker even as the Index was moving higher and higher. Here I show a very long term chart with a 52 week RSI and a simple 52 week moving average line. I guess the question on most speculator's minds is when will it bottom and turn around?

Well, there has been a lot of technical damage done and one would not expect a quick turn around. I would expect it to meander sideways for a while before turning around. That is not yet happening so maybe the projections for silver will cause further decline in the stocks. One should keep in mind that it would not be unusual for the stocks to actually turn around and start their bull move before the commodity actually bottoms out. It's a wait and see game. Let the charts tell you what IS HAPPENING and not try to jump the gun picking a bottom.

Merv's Precious Metals Indices Table

Let's call it another week.

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 .

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 . 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 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


robert clark
09 Nov 08, 17:52
buy gold

Charts are a waste of time. Comex is a waste of time.

Gold is a currency. The usd will start its massive decline any time now and gold WILL be above $900. Physical gold still remains hard to get. I bought gold coins and was told 2.5 months for delivery...thats right 2.5 months!!!

Enough said.


Post Comment

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

6 Critical Money Making Rules