gold break out coming?
MoneyLA
Posts: 1,825 ✭
We are nearing a significant price point on the one year chart for gold. At about $940 an ounce, there is a one year declining tops line. A close above 940 an ounce, would put gold "in the clear" for a test of its all time highs above 1000 an ounce.
As we know in technical analysis, charts get "filled." So if gold does indeed break out above 940, then it would be a "quick trip" to the level of the record high.
this is a very exciting time for the charts.
As we know in technical analysis, charts get "filled." So if gold does indeed break out above 940, then it would be a "quick trip" to the level of the record high.
this is a very exciting time for the charts.
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my bets have been placed, most recently a uhr
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what is your time line?
But here is a guess... with gold at 928, and with recent moves of 15-20 dollars a day, it is certainly possible that gold could break 940 in one or two days of trading.
more importantly, if you are a short term trader, if there is a break of the 940 level, you could expect a quick run up to 1000. and that is the only prediction I would make here.
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If you want to tell the direction of gold you need to price it against an average of a dozen currencies or look at something else beacause if you just chart dollars per oz then you have not allowed for the huge swing in the price of the dollar. If the dollar was still at 72 instead of 85 then you could add 15% to todays price and say it was at a record price.
What if we lived in GB. You would look at the chart of gold/pound and say, wow based on the chart its been on a huge bull rally and should continue.
I'm with the "yeah" crowd as well. In fact we've already broken out from the lower $800's and crossed several points of key resistance, the last ones being $913 and $922. Depending on how you draw that long term down trend line from March 2008, we could have already broken above long term resistance. Gold stocks would have better supported the rise in gold Friday if not for it being the last day of the month where the pro-Dow and anti-gold crowd did some last minute heavy buying and selling.....after the bell sounded. No coincidence the Dow closed at >8000.........ie 8000.6.
New cyclical low in Dow/gold.......8.6
Even the gold/silver ratio has slowly crept down....now at 73
MS64 Saints now at all-time high of $1500. 65's at $1800.
Even some of the small gold in grades of 63 to 64 has started to stir after being totally dormant for months.
The gold price in terms of world-weighted currencies has been climbing steadily and is at all time highs. In fact except for probably the dollar and Chinese yuan, the top 10-12 world currencies are all at all-time highs.
Added 1/31: there is a fairly large amount of gold optimism in the air as well as commercials, advertisements, blog and web site talke, etc. Typically, this has signaled a turning point. But I'll temper that with a pull back from here would likely be short-lived.
roadrunner
Voy forum post
Personally, I think gold may be our ONLY safe haven and pretty dang quick.
I'm sticking with CEF until I can find physical available at reasonable premium.
But here is a guess... with gold at 928, and with recent moves of 15-20 dollars a day, it is certainly possible that gold could break 940 in one or two days of trading.
more importantly, if you are a short term trader, if there is a break of the 940 level, you could expect a quick run up to 1000. and that is the only prediction I would make here.
One might surmise that if gold does go over $1,000 it is due to some degree of mass psychology and a **nominal amount of news from the world around us** being absorbed.
I was going to make a comment about charts not really meaning anything, but coyncleter's remarks made me realize that I do think that there is relevance in PE ratios - and other charts too, I'll admit.
I knew it would happen.
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this is mixing "fundamental news" with "technical analysis."
in technical analysis we look ONLY at the price action on the charts, and we do not consider changes caused by the value of the dollar which is a "fundamental" development.
you are correct that changes in the value of the dollar affect the price of gold, but that is separate from what we look at in the charts.
my comments were limited to the observation of the chart for gold.
the dollar might indeed continue to weaken pushing up gold prices, and the faltering us economy might also drive more investors to gold as a safe haven.... but these are fundamental reasons for the price of gold, and NOT technical reasons.
www.AlanBestBuys.com
www.VegasBestBuys.com
RSI which shows overbought or oversold conditions,
Bollinger bands which show breakouts in shorter durations than moving averages,
and last but not least you have the gaps both up and down which almost inevitabley get filled at some point in time.
<< <i>I am not in the business of predicting moves of how much or when. I can only say that if the price breaks above 940 then gold will move higher closing the gap to 1000.
But here is a guess... with gold at 928, and with recent moves of 15-20 dollars a day, it is certainly possible that gold could break 940 in one or two days of trading.
more importantly, if you are a short term trader, if there is a break of the 940 level, you could expect a quick run up to 1000. and that is the only prediction I would make here. >>
I'll take it one step further then. If 930-950 is broken within the next few days, and 1040 is broken just days thereafter, 1200 will be hit 3-7 days later.
Knowledge is the enemy of fear
<< <i>
<< <i>I am not in the business of predicting moves of how much or when. I can only say that if the price breaks above 940 then gold will move higher closing the gap to 1000.
But here is a guess... with gold at 928, and with recent moves of 15-20 dollars a day, it is certainly possible that gold could break 940 in one or two days of trading.
more importantly, if you are a short term trader, if there is a break of the 940 level, you could expect a quick run up to 1000. and that is the only prediction I would make here. >>
I'll take it one step further then. If 930-950 is broken within the next few days, and 1040 is broken just days thereafter, 1200 will be hit 3-7 days later. >>
I wish I saw what you guys are seeing, but really, I just don't see it.
Here is the five year chart:
Doesn't look particularly bullish to me.
The one year chart:
If anything the one-year chart looks bearish to my eyes. Ah well, in the fullness of time we will see.
The most bullish looking gold chart is the one I linked in a different thread a couple of days ago, 5-year gold in Euros
The caveat is that 24,000 on the Euro chart would be a near term price target and it is almost there (23,282 right now).
But that time is not now as gold is still within the confines of the downtrend. That could change tomorrow. Who knows.
Knowledge is the enemy of fear
Note also that the rising 50 dma is due to intersect the flattening 200 dma this week.
roadrunner
I knew it would happen.
A break out is opposite of what it's doing now. Maybe the Steelers' win is bad for gold?
I knew it would happen.
<< <i>What's a break out? >>
The 5-year gold in Euros chart is a breakout when it made new all time highs.
The gold chart in dollars is not (yet). However, if you look at the price action around September 2007 that was a breakout.
Textbook chart breakouts are a flat line chart followed by a powerful move to new highs on heavy volume. A second common pattern looks like a cup and handle, where there is a fakeout dip of selling, followed by new highs. The top chart shows both kinds, with the breakout from 16,000 per kilo more of a flat base, and the more recent move above 20,000 looks more like a cup and handle base.
With Ed McMahon selling his gold toilet during the Superbowl along with MC Hammer unloading his gold heirlooms (I thought MCH was broke, so where'd he get the gold?)....the only question that now remains.....what about Mr. T and his gold necklaces? Maybe if Ed had invested more of his money in gold the past 7 years he wouldn't be in such financial duress where he has to shill for the Cash4gold guys. I wonder if it's all a PPT plot? If they get Springstein on board that will be a coup. But for now, Bruce is only going to Disneyland. Check out one guy's internet story who was offered 1/3 of spot for his gold by Cash4gold.
roadrunner
www.AlanBestBuys.com
www.VegasBestBuys.com
<< <i>one day does not make a trend. >>
I hope not ...
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