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Hello All,
Below is a Weekly bar chart for April Gold (GCJ0). The arrows are pointing to lows of particular bars. I subscribe to the idea that this is where the stops are. I also subscribe to the idea that the markets like to go after stops. ( To be politically correct, where the business is). If the market is going to make it its mission to go down and get those little clumps of fruit, it will likely be with some zig-zags along the way. These zigs (or zags) for a decent move to the upside could occur around the 1027.0 area.
There are former lows, former highs and a 40 Day moving average all hanging around in the 1026.0-1029.0 area. Traditional technical analysis would suggest there might be some support in this area. If the feeding frenzy to the downside continues for about 3 days, I will focus on the 1023.0 area to buy Gold for a short term upmove, similar to the bounce from the 1076.0 area (50 cents).
Below is a scrunched up Daily bar chart. Everybody’s starting to jump on the bearish bandwagon, so we may see some decent upside washouts of these late jumper, market chasers.
Gold is an emotional commodity. Besides the 1023.0 area, price areas I will consider getting long, for a short term trade, will be in the 994.6 to 989.4 area, and I especially like the 977.6 to 973.0 area. Use reasonable stops from these areas. I expect minimum $20 moves from these areas.
For me, getting short looking for these low prices is too hard, given the fluctuations we’re seeing. I would prefer to wait and buy a good (new) low price from someone that’s definitely chasing the market down. Market chasers are usually good for about a $700 per contract haircut.
The flood gates will probably open up on a break of 1042.5 for quick tumble to 1029.0.
Get your orders in early!
Have a look at my website for a history of what I’ve been saying about the markets. Go to, www.FASTMKT.com. ….. And fill out some Trading Account papers while you’re at it!
Sean Blair
+FASTMKT>> FOCUS
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There will rarely be a time when you will ask me a question about the markets that I won't have a solid answer for. I also write what I call a "bootleg newsletter." In it I will provide charts and comments about various commodities in position for a nice trade. A great way to find out more about what I do would be to call me. I welcome your call.
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