• 6 hours $5 Million Gold Toilet Vanishes
  • 6 hours Gold On The Rise After Fed Rate Cut
  • 9 hours Oil Trader Loses $320 Million On Derivative Bets
  • 1 day S&P 500 Officially In An Earnings Recession
  • 1 day Miners Are Weathering The Trade War Storm
  • 2 days UK Credit Card Interest Rates Are Skyrocketing
  • 2 days From Frenzy To Flop, The Death Of This Year’s Most Hyped IPO
  • 2 days Are Smart TVs Spying On Us?
  • 3 days Is Fossil Fuel Divestment A Waste Of Time?
  • 3 days A Russian Billionaire’s Space Quest To Save Humanity
  • 3 days Markets Take Breather As Consolidation Continues
  • 3 days Economic Woes Weigh On Copper Prices
  • 4 days World's Largest IPO At Risk Following Drone Strikes
  • 4 days Gold Is Beating Buffett’s Berkshire Hathaway
  • 4 days What’s Behind The Silver Sell-Off?
  • 4 days The Retail Apocalypse Is Accelerating
  • 5 days The Top Tech Stocks Of The Year
  • 5 days America’s Workforce Elderly Workforce To Double By 2028
  • 5 days Toyota Tests Solar-Powered Prius
  • 6 days Why The Gold Rally Flatlined
The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

Billionaires Are Pushing Art To New Limits

Billionaires Are Pushing Art To New Limits

Welcome to Art Basel: The…

Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

TheWaveTrading

TheWaveTrading

TheWaveTrading

My goal is to establish the most likely path that the price of a particular asset will undertake and profit through ETF instruments both on…

Contact Author

  1. Home
  2. Markets
  3. Other

Time to Reconsider Gold

Monthly time frame:

  • Gold has been in a bear market since 2011.

  • A potential Ending Diagonal, which is found at the termination point of a large pattern, could establish a major bottom


Larger Image

The Ending Diagonal is a compelling reason to expect at least a large retracement of the decline from the 2011 top

  • Gold is now attempting to breach a trend line resistance from the 2012 lower high
  • A strong end of month could complete a Morning Star reversal pattern
  • The next resistance is located at the 10 mma = 1126
  • Above the 10 mma we have resistance 1 at 1192 and resistance 2 at 1308
  • The origin of the Ending Diagonal is located at 1390 which coincides with the 0.382 retracement of the decline from the 2011 top


Larger Image

Weekly time frame:

  • In addition the decline from the September 2011 top can be counted as corrective (Double Zig Zag)
  • In order to confirm the Ending Diagonal Gold has to breach the upper converging trend line, which coincides with the 50 w ma = 1153
  • If the 50 wma is breached and it becomes a support then odds should favor a large rebound and maybe even a major bottom


Larger Image

Daily time frame:

  • Last week Gold reclaimed the 50 dma and broke the resistance at 1090.
  • Friday's Inside Day is suggesting a potential short-term pause
  • If the 50 dma holds the next move up should aim at the 200 dma = 1140
  • It will be interesting to see how gold reacts to a potential oversold rebound of the stock market
  • A pullback should be viewed as a buying opportunity


Larger Image

 

Back to homepage

Leave a comment

Leave a comment