Tag Archives: gold

Gold at a Critical Juncture

Unable to rebound, gold is now at a critical juncture, trading this morning just above $1200. Price action is weak with the 14-day Relative Strength Indicator (RSI) at 40.38. Major support is near $1180. Share

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Gold Testing a Crucial Fibonacci Retracement Level

After a 61.8% Fibonacci retracement of a three-year rally, a base for a rebound was formed near 1,150 and prices are now testing the 50% Fibonacci retracement level near 1,300. This is a crucial test and its outcome will decide … Continue reading

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Dumping Gold to Buy Equities Has Paid Handsomely

Some investors and funds decided to increase their gold holdings near the end of last year fearing a decline in stocks. Gold rallied as a result with GLD returning 14.6% by March 14 when the total return of SPY was near … Continue reading

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A Not So Surprising Drop in Gold Prices

Although some analysts thought yesterday’s drop in precious metals was surprising, there were plenty of technical warnings that a correction was looming. As a matter of fact, last Friday we warned about the possibility of a bull trap in GLD. Share

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An Island Reversal Squeezes Out Death Cross Shorts in Gold

This blog has warned about a short squeeze coming in gold in this June 11 post. It is interesting how an island reversal, which is a classical chart pattern, invalidated a 50-200 moving average death cross and a descending triangle. Share

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High Probability of a Short Squeeze in Gold

After a death cross occurred, GLD dropped -1.8% but found support and has since gained +1.4%. The possibility of a short squeeze in GLD is real because the death cross was too obvious of a signal. If in addition the stock market … Continue reading

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