Gold

Looking at Thursday and Friday's action on gold I think we are ready for that 'washout' the UBS report keeps reminding us of (for those who read it). They've suggested 1200, 1190 and 1164 as targets. There are still lots of bulls so I think it's going to be a very bumpy ride down but as DXY is now bouncing I think (hope!) it's going all the way to 1164'ish.

Something to consider is that gold started its meteoric climb on the first day of January - while the big boys were still enjoying their New Year holidays. They'll want to drive it as low as they can to load up before they let it fly to mid 1300's again.

That wick on the weekly candle is going to take a lot of bull energy to climb above and the only way to get that is to drop it nice and low first.

Once it drops below 1208 we'll know the direction for sure.

good place to go long on gold if you like the shiny stuff...

50 day ema, and the channel support trendline both at $1246.....this may bounce a few pips/dollars beforehand, as it seems to like a bounce just shy of teh 50 day ema.....

Stops below $1246...

ATB, dyor.
Trendfriend.

Stay nimble with gold on the short term. Was close to closing my short at 1242 yesterday but just missed out. Would prefer to see more of a pullback / consolidation before going long just yet.



dl.dropboxusercontent.com/u/24866576/201...7%20Gold%20daily.png

Cheers
M

Yes, you could well be correct Monkeyz...

However, while this is above the trend line and above the 50 day ema line, a move up to the top of the channel at 1325 area is not only a good possibility, but highly likely imho........

Off course, i will add the caveat that a break and end of day close below the trendline, and 50 day line, should see a move down to 200 day ema line at $1190....the rsi has broken support, and that could be a indication of more downside....

I'm happy to stay long above the trendline and 50 day for now.....
lets see how this plays out this week.....

imho, dyor and wdik
Trendfriend.

Good call on Gold Monkeyz....

do you think $1190 200 day ema line is likley now??

i think $1190/1200 strong support...

but wdik.....
Trendfriend.

Have a quick look at tradingview.com and a poster on there called "chartwatchers". He's made some very good calls on gold recently.