Metal Analysis Report 8-1-18 Is Gold About To Reverse???
I talked about Gold over a month ago,
The weekly trend is up, but price is pulling back into a level on level (one zone on top of another zone) weekly demand zone. There are unfilled buy orders just below $1250 and $1210. Despite price liking whole numbers (in this case $1200), I anticipate getting a strong reaction to the $1250 demand level. Target 1 is $1315.
Price did react to the $1250 demand level, but was met with sellers near the $1270 level. However, price looks like it wants to bottom out at the lower demand level at $1210. Price formed a double bottom and RSI is showing bullish divergence. Price is also near the psychological level of $1200.
A record number of fund managers, surveyed by Bank of America Merrill Lynch, said they see gold as undervalued. In the survey, 17 percent of the fund managers said the precious metal may be too cheap, while more than half of the 178 fund managers said the most crowded trade was in the FAANG stocks.
If the reversal is going to happen, it must take out the sellers at $1245 first. That level is also known as a "FLIP ZONE" where previous demand is now supply.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
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by rollandthomas
I guess a lot of this depends on the FED's decision tonight. If there is a surprise in any direction we might see some crazy moves. Overall gold looks extremely weak to me :)
Good article
Thanks @ervinneb, I agree Gold is weak, but the charts suggest that it will bounce. I like to see it close above the 21 EMA personally.
I’m surprised that the market thinks the Fed is ahead of the curve on inflation which is why gold and precious metals are down this year.
Agree, I think the Fed will always over/under shoot the interest rates before they get it right.
I'm pretty impressed by your analysis. How did you gain your knowledge and experience. I doubt it was from watching CNBC...
Thanks @morseke1. I'm a Wall Street junkie and fascinated by all the manipulation, so I eat and breathe this stuff and been following the Markets since 2001. More importantly, I'm just trying to spread the truth that Wall Street doesn't tell us retail investors.
You mentioned you have a news letter and/or following people yourself, right?
I'm spend around 30 hours of week outside my job on investing and keeping up with my substantial pile of top financial newsletters. I have have two types of Flex Alliance subscriptions that give me access to almost all of Stansberry Research's offerings. I also have 3 subscriptions with Palm Beach Research including their renowned crypto/blockchain focussed Palm Beach Confidential. I have a subscription to James Altucher Report, the Rick Rule Alliance and a few others.
I would say I'm deep in the weeds of crypto/blockchain investments and also gold/silver/uranium and all the resources investments. I'm locked and loaded with the best projects in both these markets that one day will have rocket boosters attached to them. Meanwhile, I've learned to accept the volatility in order to participate in the best wealth creating trends I know. Commodities are at an extreme relative to the S&P 500 that rarely happens. The last 3 times they were this hated and incredibly cheap the opportunities created substantial wealth for those brave enough to join the billionaire resource investors such as Rick Rule and Eric Sprott.
Agree with the article for the long term, I spotted the same support where demand may increase.
I agree with @ervinneb for the short period, even if I don't expect any change in the interest rate.
Good stuff, if price takes out the sellers at $1245, price has a chance of moving higher.