Gold Bubble Weekly Update Week 12

sawcruhteez (55)in #investing • 8 years ago

This is not a recommendation to buy or sell. This is for entertainment purposes only

Last week was the first time in 3 months that I did not provide an update about the upcoming Gold Bubble. I got too busy and let it slip through the cracks. We are currently at the most crucial level of support that we have seen since threatening to break down through $1,000 in December of 2015.

We are testing the longer term bull trend line for support that dates back to the same time period. Furthermore we are at a very important level of horizontal support. It is the first time Gold has fallen below $1,300 in 2018.

If that breaks down then I would expect it to quickly get bloody. Right now is the the 1.5 month downtrend vs the 2.5 year uptrend. I always give the longer term time frames more credit and expect the bulls to be victorious again.

We have had a bull div in the OBV that started in October of 2017. The price fell and we saw a sudden spike in volume. As gold continues to trade under the key level of resistance ($1,380) we can see that the OBV broke out of it’s key level of resistance and has managed to support above it as well.

Weekly Chart

Despite the bull div in volume on the Daily we have a bearish div on the weekly. As above I give more credit to longer time frames and this will be something to pay close attention to. I like that the bears were unable to close a weekly candle below the longer term bull trend line. That is where we must draw a line in the sand and hold strong!

Monthly Chart

Looking at a small bearish div on the monthly.

Moving forward I am seeing two options:

SPX breaks down below $2,700 and enters bear market. Gold pumps to $10,400+ by 2028
SPX rallies for two more years. Gold pulls back for a $1,000 retest. Option 1 is delayed until 2020

I do not see an option that doesn't include another Gold Bubble in the next 10-12 years. Houses are priced higher than they were in 2008. Companies are making more money from stock buy backs than they are in their day-to-day business. Wells Fargo reached a new all time high this year. The student loan situation is far from sustainable.

That ball of wax is waiting to be lit on fire. Will you be financially prepared?

Happy trading and remember that following is always free!