Alert: Gold Bear Walking Through Markets

October 15, 2013

For those of you who read my article on how I am approaching the precious metal in October, let’s take a step back and re-evaluate the situation since it is mid-month. We now have 10 more daily candles to give us further clues as to what is happening from a technical standpoint. We would have 3 main observations from the Daily charts:

Price is still below the 200-day Moving Average.

Price has broken past the $1,300 zone an important area of confluence for 3 reasons: 
a. Neck-line of the D1 head and shoulders pattern 
b. 50 fib level of the Oct '08 swing low and Sep '11 swing high 
c. There has been price action in this zone of support/resistance

There is on official mid-term downtrend as 2 consecutive lower lows and lower highs have been form as depicted by the bearish channel

We might be able to identify good bearish entries on an intra-day time frame off price reactions to the $1,300 zone. I for one will be looking for a pullback and reversals of those pullbacks for possible re-entries short. 

I am aware many gold bulls are calling bottoms right now but I am not really concerned with that at the moment as there is still room to the downside seeing that on the weekly chart the previous swing low in June this year is around the $1,200 zone. 

As trend traders, we are not clairvoyant; I cannot tell you with absolute certainty that price will head down. What I have done is to merely describe that price is trending downwards now and that we would like to find places to join the bear as it is walking through the markets.

By Jonathan Suen, Blackwell Global

 

Publication source
Blackwell Global information  Blackwell Global reviews

January 20, 2017
The dollar has settled moderately lower
Asian stock markets were mixed overnight, after U.S. and European shares closed in the red Thursday. Japan and mainland China bourses managed to move higher (Chinese GDP beat expectations at 6.8%)...
January 20, 2017
A huge disappointment in the UK data
UK retail sales fell most since 2012. We see he fastest pace of decline in almost five years in December. It is due to sales of... pretty much everything from household goods to clothing and food...
January 20, 2017
Trump takes office today. Markets await inauguration speech
Investors await Trump's inauguration and speech due later today as he takes office as the 45th President of the United States. The U.S. dollar was seen giving up some of the gains yesterday with some volatility coming off the EURUSD on the back of the ECB meeting...

Orbex Rating
FxPro Rating
OANDA Rating
Trade360 Rating
Tickmill Rating
OctaFX Rating

OptionRally Rating
24option Rating
IQ Option Rating
Migesco Rating
Binary.com Rating
OptionBit Rating