Gold – 6 Feb

Paper gold price confirmed the swing high that was put in on Friday by closing lower today. Resistance held at 1765 and now we must look to possible support areas where a swing low can be made. Although price closed lower, the short term uptrend remains intact until the swing low at 1651 is taken out. This is a long way away and I believe we will see a swing low before that level. Stochastic has technically lost the embed with a reading now below 80. Therefore the first support level and price objective will be the 18 day moving average, currently at 1694. Just below there is the 100 day moving average supporting at 1687. Then strong chart support between the 1650 and 1660 level where the 50 and the 200 day moving averages lie.

This chart is bullish in the short term with a series of higher highs and higher lows. I like the prospects of one of the support areas holding, followed by and the formation of a new and higher swing low. If I were trading paper I would consider a buy on a confirmed swing low above 1651. Another possibility would be to watch and see if the 18 day moving average holds or not. If it does not, I would look to buy just above the swing low at 1651 with a stop just below. If 1651 falls, then a long should exit because the uptrend will then be neutralized.

The expanded chart shows the two strong levels of resistance overhead that remain and will need to fall before an assault on the all time high can occur.

The weekly chart is where the physical buyers should be. Daily movements in paper are meaningless. The question I hear the most is whether today is a good day to buy physical gold. The weekly chart is for people who either do not know about Freegold or who are not fully sold on it. They are buying physical gold, good, but they still believe the price they buy in at will largely determine whether their investment will be a good one. Fine, use this chart. But know that even this chart is meaningless considering the current real Freegold price of physical. RSI is just above neutral at 55 and is close to support, flashing a buy signal. MACD is about to put in a bullish cross, flashing buy. Stochastic is not yet over-bought and says go ahead and buy. Your concern is to buy with plenty of upside potential. This chart says the time to buy is now.

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This entry was posted in Gold, Matrix Sentry TA, Technical Analysis. Bookmark the permalink.

2 Responses to Gold – 6 Feb

  1. chuck ball says:

    Ron,

    I don’t post much, but I always enjoy your analysis. Keep it up. Learning more everyday. Thanks for the time and effort.

    Chuck

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