Another Visit To The Gold Stall

Another Visit To The Gold Stall

Dragonfly Capital  | May 19, 2017 10:34AM ET

Gold has been a fickle metal to find a price for over the last 5 months. Ever since the minor stall near 1220 in January, it has bounced around a lot. First down to its 20-day SMA then a move higher, stalling in the 1245 to 1260 zone. Another drop down to 1200 found support at the round number and reversed. It stalled again in the 1245 to 1260 zone. Then a move higher failed and it fell back again to a higher low.

Now gold has reversed off of that low and is back at the 1245 to 1260 stall zone. It has spent two days in this range so far and is trading within the range as I write Friday morning. Will it stall again? What is with this range? Is it magic? Looking at the 1-year chart of gold prices suggests there is some magic about this range. It also stopped the price of gold in October and June, and despite the strong shift lower in November, notice the single-day dip into the range and bounce before dropping the next day.

Gold Daily

Six times the price of gold has hit this range and stalled or reversed. Which will it be this time, a reversal or continuation? Momentum has been trending higher suggesting continuation. And the price is holding over the 20-day SMA. There is room within the squeezing Bollinger Bands® to about 1290 above. these suggest a break will be to the upside. That may or may not happen. But what is more certain is that it is better to what for a break of this 1245 to 1260 stall zone to place your bet.

Dragonfly Capital

Related Articles

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Seqenenre Tao
Seqenenre Tao

Magic, yep. Lol, nicely done :)  ... (Read More)

May 19, 2017 04:01PM GMT· Reply
Write a reply...
Please wait a minute before you try to comment again.

Fusion Media will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible. Currency trading on margin involves high risk, and is not suitable for all investors. Trading or investing in cryptocurrencies carries with it potential risks. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Cryptocurrencies are not suitable for all investors. Before deciding to trade foreign exchange or any other financial instrument or cryptocurrencies you should carefully consider your investment objectives, level of experience, and risk appetite.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures), Forex and cryptocurrencies prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn’t bear any responsibility for any trading losses you might incur as a result of using this data.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (UK) English (India) English (Canada) English (Australia) English (South Africa) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 中文 香港 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt
Sign out
Are you sure you want to sign out?
Saving Changes