Gold Bubble Weekly Update #8

sawcruhteez (55)in #investing • 8 years ago

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

Last week was not a good week to have gold fever, and neither was this week : ( However, we are currently trading at a major level of support and the S&P has just started to pull back off resistance.

Stay tuned because things could get interesting fast!

Monthly

The shooting star that I was worried about last week has fallen outside of the triangle. There are only a few hours left and closing below $1,327 would not be a good sign for the bulls. The RSI remains above 50 but it has formed a lower high and a lower low.

Weekly

Threatening to turn support into resistance. Need to hold above $1,300 or break major support that has held for 5 months. RSI continues to create lower lows and lower highs. Just peaked below 50 for the first time this year.

Daily

The battle line has been drawn on the daily. Close above $1,313 and take the momentum back from the bears! That would give us a bullish wick/ hammer doji at horizontal and trend support. It would also keep us inside the triangle.

The RSI continues to bleed but that is to be expected after an 11 day sell off.

Final Thoughts

There are a lot of bearish signals that are starting to add up, especially on the higher time frames. However, I remain as bullish as ever. I opened a leveraged long at $1,316 with a profit target of $1,349.

Sure this could be the time that we breakthrough support, however that is not how to trade. Buy support and sell resistance, let everyone else worry about the 'what if's'. Stop loss is set at $1,298 and that gives a 2:1 risk reward ratio. If I am wrong then so be it.

Comment if you have something to say. Smash the like if this has been helpful and definitely finger that follow!