Gold Bubble Weekly Update #7

sawcruhteez (55)in #investing • 8 years ago

Disclaimer: This is not meant as financial advice and is for entertainment purposes only.

This has not been a great week for the gold bugs, but some big moves look to be on the horizon. The S&P 500 has been pulling back over the past 24 hours and so has gold. Historically these two assets have an inverse relationship and I expect that to resume sooner rather than later.

Whether it will be gold pumping or the S&P remains to be seen.

The USD has been crushing it over the past 24 hours.

Typically I view this as a good sign for the S&P, and bad for Gold/Bitcoin.

1 Month Chart

Shooting star doji forming. If it closes then it is a very bad sign for the bulls.
Resistance at $1,355 has held strong, but support continues to move up.
RSI remains above 50 which puts bulls on the offensive.
Bollinger bands are tighter than they have been in 10 years.

1 Week Chart

Currently testing the trend support. If it falls through then it could get ugly quick.
If we continue to gain support at that trend line then it is only a matter of time before we break resistance.
We are at horizontal and trend support, and I expect bulls to mount a good defense
RSI remains above 50, but is threatening to fall below for the first time this year.

Daily Chart

Posture is very similar to the weekly.
Volume decreases as price pulls back, good sign for the bulls
RSI has crashed below 50. Every time that has happened this year it has indicated a good opportunity to buy.

In conclusion this is a very critical juncture for Gold. If we can continue to support above the trendline and inside the triangle then we will be primed for liftoff. Being at horizontal & trend support along with the buy indicated from the RSI has me considering adding onto my position.

Happy trading and go bulls!