Gold Nearing Major Break Out
Dragonfly Capital | Aug 22, 2017 10:25AM ET
Say the word gold and everybody has a reaction. Some think of polished shiny jewelry, a necklace, bracelet or ring. Others see rappers with a pile of it to show how rich they are and maybe a grille on their teeth. Some, especially Peter Schiff, with a market orientation think of an inflation hedge, or place to store wealth when the world is in crisis. But virtually no one thinks of a crusty old man with a scraggly beard and a pan dipping it into a creek to find little nuggets to get rich quick.
Gone are the days of the ’49ers flocking to California to stake a claim and get rich quick. gold may have a different story to tell though. It is sitting at a major resistance zone and prepping for a break out. Maybe it is once again a time to get rich quick with gold. Take a look.
Gold bottomed in December after a drop from a high 6 months earlier and then started higher. It paused in January after retracing 38.2% of the move lower, but only for a week or so. Another leg higher touched the 200 day SMA and it pulled back again. A third leg higher in March hit 1300 by early April and gold stalled once more. Since then it has oscillated in a range from about 1200 to 1300.
Today it is pounding on the ceiling at 1300 again. Momentum is bullish with the RSI churning over 60 and the MACD rising. And the Bollinger Bands® are shifted to the upside, to allow continuation higher. Above 1300 the next level of interest would be 1319, a 78.6% retracement of the down leg and then 1345, prior resistance and a 88.6% retracement. Your clue will be a push and hold over 1300, especially on a weekly basis. Failure to do so and a move back under 1275 could signal this is just another oscillation and gold is about to return to the 1200 area.
Get The News You Want
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.