• 260 days Will The ECB Continue To Hike Rates?
  • 260 days Forbes: Aramco Remains Largest Company In The Middle East
  • 262 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 661 days Could Crypto Overtake Traditional Investment?
  • 666 days Americans Still Quitting Jobs At Record Pace
  • 668 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 671 days Is The Dollar Too Strong?
  • 671 days Big Tech Disappoints Investors on Earnings Calls
  • 672 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 674 days China Is Quietly Trying To Distance Itself From Russia
  • 674 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 678 days Crypto Investors Won Big In 2021
  • 679 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 679 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 682 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 682 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 685 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 686 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 686 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 688 days Are NFTs About To Take Over Gaming?
Greg Troccoli

Greg Troccoli

Greg created The Chart Lab to deliver timely, actionable and unique Technical Research to both the professional and individual investor. Unlike most services, our research…

Contact Author

  1. Home
  2. Markets
  3. Other

Remain Long Gold, Unless.........

Gold

As of Wednesday, July 13, 2011, Gold traded to a new historical high at $1.578.50 / ounce. The up-trend line (denoted in blue) has been intact and defined the explosive upside move in Gold since October 2008, at which time the market had just constructed a bottom at the $700.00 region.

In addition, the 200- Day Moving Average (red) Line has been positively sloped since March 2009 - which coincided with the U.S. Equity markets posting its multi- year low.

Overall, this has been one of the most dynamic text- book examples of a solid trend in recent history. Even some of the price corrections in the last 2+ years (when the price of Gold traded lower, either on profit taking or speculators taking an outright short position) were minor, and consistently held support at both the up-trend line and Moving Average Line simultaneously (see chart).

The fact that there is such a uniformed bullish consensus in Gold amongst most investors, makes me skittishly bearish at this time. However, the proof is in the facts, and since the Technical outlook remains positive at this juncture, I would recommend selling Gold only if a downside violation of the long term up- trend line occurred. Specifically if a monthly close (last trading day of the month- since we are utilizing a monthly chart) below $1,422.00 is posted.

 

Back to homepage

Leave a comment

Leave a comment