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Gold Charts are Bullish in Many Currencies
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“Beauty is in the eyes of the beholder.”
Some people can look at a chart and see ugliness; others look at the same chart and see bullishness.
(Charts courtesy Stockcharts.com)
Featured is the gold price in Canadian dollars. Price is consolidating after having run up to the 1,300.00 level. The RSI and MACD are positive (green lines). The 50D is in positive alignment to the 200D (green oval), and both are rising. The green arrow points to the overall trend: BULLISH!
Featured is the gold price in Euros. The trend is up and price is now in the process of forming a bullish ‘cup with handle’. A breakout at the blue arrow will be very bullish. The supporting indicators are positive (green lines), and the 50D is in positive alignment with the 200D (green oval), and both are rising.
Featured is the gold price in Australian dollars. The trend is up and the supporting indicators are positive (green lines). Price has just completed a ‘golden cross-over’ (black arrow). A breakout at the blue arrow will mark an end to the pullback and turns the short-term trend bullish again.
Featured is the gold price in Japanese Yen. The trend is up and the supporting indicators are at support levels (S), and price is nearing a strong support level as part of this short-term pullback. The 50D is in positive alignment to the 200D (green oval) and both are rising. The larger pattern shows a bullish inverted ‘head and shoulders’ formation. A breakout at the blue arrow will confirm this pattern.
Featured is the gold price in Swiss Francs. The trend is up and the supporting indicators are positive (green lines). The 50D is in positive alignment to the 200D (green oval) and both are rising.
Featured is the gold price in British Pounds. The overall trend is up and price is currently pulling back towards support at the horizontal green arrow. The supporting indicators are also nearing support levels. The 50D is in positive alignment to the 200D (green oval), and both are rising.
Featured is the daily gold chart. The pattern is a very bullish inverted head and shoulders formation. The breakout at $1,000.00 has a minimum target at 1,300.00 and a possible target at 1,500.00 (this year!). Pullbacks such as the one that began on December 3rd offer opportunities to take advantage of this ongoing bull market.
Summary:
Gold is rising is every currency we cover. The current pullback in the gold price which began on December 3rd is reaching ‘maturity’. It is now 38 days old (compared to the average of 9 pullbacks of this size since 2001 which is 33 days). Friday January 28th will see the expiry of a number of gold options. Those who hold the short end of those positions have been able to help keep the gold price below 1,100.00. This downward pressure will be gone by Friday.
The current bull market is nowhere near its ‘bubble top potential’. Those of us who were active in the gold market between 1976 and 1980 can tell you that we’re not even close to the excitement you’ll see and feel when we near the top.
Peter Degraaf
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Peter Degraaf is an online stock trader with over 50 years of investing experience. He issues a weekend report for his many subscribers. For a 60 day free trial visit his website www.pdegraaf.com or send him an E-mail itiswell@cogeco.net. While at his website be sure to look at the ‘Stock Pick of the Week’ and read the essay: ‘My expectations for the future’.
DISCLAIMER: Please do your own due diligence. Investing involves taking chances. I am NOT responsible for your investment decisions.
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