Most Popular
1. Dow Max Drawdown Bear Stock Market 2022 - Accumulating Deviations from the Highs - 21st Feb 22
2.Putin Starts WW3 in Ukraine, Will Use Tactical Nuclear Weapons, China Prepares Taiwan Blitzkrieg - 28th Feb 22
3.World War 3 Phase 1 - Putin WINS Ukraine War! - 25th Feb 22
4.INVESTORS SEDUCED by CNBC and the STOCK CHARTS COMPLETELY MISS the BIG PICTURE! - 10th Feb 22
5.Will There Be A 2024 US Presidential Election? - 3rd Mar 22
6.Gold and SIlver, Precious Metals Sector Is at a Terrific Buy Spot - 6th Feb 22
7.Why Putin Wants the WHOLE of Ukraine - World War 3 Untended Consequences - 6th Feb 22
8.Dow Stock Market Expected Max Drawdown 2022 - 19th Feb 22
9.Stock Market Calm In the Eye of the Inflation Storm - 4th Mar 22
10.M = F - Everything is Waving! Stock Market Forward Guidance - 7th Mar 22
Last 7 days
Why APPLE Could CRASH the Stock Market! - 21st May 22
Why Is Crude Oil Ignoring US Inventories? - 21st May 22
Here is Why I’m Still Bullish on Gold Mining Stocks - 21st May 22
THE INFLATION MEGA-TREND QE4EVER! - 20th May 22
US Real Estate Investors – Is There An End In Sight? - 20th May 22
How Technology Affected the Gaming Industry - 20th May 22
How To Set And Achieve Reasonable Goals For Your Company - 20th May 22
How Low Could the Amazon (AMZN) Stock Price Fall? - 19th May 22
Bitten by FANG? Clocked by Cryptos? -- 'Air Pockets' Everywhere - 19th May 22
Northern General Hospital Orthopedics Fractures and and Ankle Clinic Consultations Real Patient Experience - 19th May 22
Cathie Wood Goes All in on Teladoc, ARKK INSANE Noob Investing Strategy! - 17th May 22
This is Anything but Positive for US Housing Market - 17th May 22
What Should We Do If There Is No Fed Monetary Policy Pivot? - 17th May 22
All Possible Ways to Earn Free Litecoin - 17th May 22
How low Could the Amazon Stock Price Fall? - 16th May 22
Cathy Wood ARKK INSANITY There is NO Coming Back! - 16th May 22
NASDAQ 100 Stock Market LOWER LOWS & LOWER HIGH - 16th May 22
Sanctions, trade wars worsen US inflation - 16th May 22
AI Tech Stocks Earnings BloodBath Buying Opportunity - 14th May 22
Futures Contract – Trading Crude Oil With USO - 14th May 22
How to Get Kaspersky Internet Security for 80% Discount! Do not Pay Renewal Price! - 14th May 22
Sagittarius A* Super Massive Black Hole Monster at Centre of Our Galaxy REVEALED! - 14th May 22
UK Public Debt Smoking Inflation Gun - 13th May 22
What Happens When the Stock Market Dip Keeps Dipping? - 13th May 22
Biden Seeks Inflation Scapegoats; Gold Advocate Wins GOP Primary - 13th May 22
Apple and Microsoft Nuts Are About to CRACK and Send Stock Market Sharply Lower - 12th May 22
The War on Gold Ensures the Dollar’s Downfall - 12th May 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold Continues to Mark Out a Top

Commodities / Gold and Silver 2011 Sep 11, 2011 - 11:36 AM GMT

By: Clive_Maund

Commodities

Best Financial Markets Analysis ArticleGold continues to look as though it is marking out an intermediate top area, with several additional bearish developments having manifested over the past week. One is the powerful breakout in the dollar, which was predicted on the site in the article The Great Dollar Shocker just days before it occurred. Could the dollar and gold rise at the same? yes, they could, especially if the dollar's gain is largely due to the demise of the euro, but a strong dollar does mean that gold will be battling headwinds.


The other negative development was the appearance of a strongly bearish "gravestone doji" candlestick on the gold chart last Tuesday, visible on the year-to-date chart below, shortly after it made a new high intraday, on huge volume - the second highest for years. More generally the continuing heavy volume in gold and extreme "skitzo" volatility with big daily moves in both directions is viewed as a sign of an overheated market close to burnout. We can see all this on the year-to-date chart below, and also how gold has hit a trendline target, and is heavily overbought relative to its moving averages, having opened up very large gaps with them, and is still heavily overbought on its MACD indicator, although this has eased somewhat over the past couple of weeks. Earlier it had looked like a small Head-and-Shoulders top was completing in gold, but this now appears to have morphed into a small Double Top and it is clear that the resistance in the $1900 - $1930 area is a key level for gold. Volume is bearish as it remains at a high level with big volume on down days.

You may have seen some articles postulating that gold has entered into a new super steep uptrend. Perhaps it is about to, but our 6-year chart suggests that instead gold has arrived at the upper return line of its broad long-term uptrend channel in a massively overbought state that calls for a significant reaction, or at the very least a lengthy period of consolidation. This chart shows that it could react back to say the $1600 area without even putting a dent in its long-term bullmarket.

The dollar has just startled many bears by staging a dramatic upside breakout that has left them in tatters. We saw this coming days ahead of time having observed the Falling Wedge in the dollar index and its refusal to make new lows and diminution of downside momentum in the face of a barrage of negative press.

We are well aware of all the arguments that "this time it's different", and that, therefore, gold and silver are set to explode to the upside. Maybe it is, but that's not what these charts suggest - they suggest that "the powers that be" are going to pull another rabbit out of the hat, and if they do the "this time it's different crowd" will be carted off to the graveyards of Wall St by the waggonload, while the cheerleaders retreat quietly into the shadows. clivemaund.com subscribers are prepared for the worst, armed with our Complete Toolbox for Capitalizing on a Gold & Silver Plunge.

By Clive Maund
CliveMaund.com

For billing & subscription questions: subscriptions@clivemaund.com

© 2011 Clive Maund - The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maunds opinions are his own, and are not a recommendation or an offer to buy or sell securities. No responsibility can be accepted for losses that may result as a consequence of trading on the basis of this analysis.

Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications.

Clive Maund Archive

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


Post Comment

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