Click on Chart to Enlarge
Following up on several recent posts I have made tracking a potential buying opportunity on gold, this chart shows that gold prices are currently at the $1250 level which I consider to be the ideal ending price level for this bottoming pattern.
As the chart notes above suggest, a quick move below that level followed by a move back up and any daily time frame technical buy signal, would be cause for long entry in my opinion.
While not shown on this chart, gold prices have also closed outside the lower daily bollinger bands for 4 straight days. I have discussed this type of action before in other markets, but it can lead a near immediate rebound. Additionally, weekly stochastics is now oversold at a high low, and price logic since the beginning of the year, suggests that the upwards move is the more powerful, and so we are sensible to prepare for the possibility of a higher low forming here.
Also please review some charts of gold seasonality and understand that for whatever reason, the June-July time frame is often when gold places a relative low. And we are now entering that window.
Google results on seasonal charts here.
The track and update as necessary, as well as the gold price fluctuations occur erratically.
ReplyDelete