Why Gold is Going Higher
Hi Traders and thanks for checking out my blog.
Gold seems to be a hot topic as of late so I figured I’d go ahead and throw my own analysis into the mix. Although I am not an expert in gold. I am a pretty good chartist. When you can properly read charts, you can trade just about anything. You’d be surprised how much fundamental information you can get from charts by paying close attention to the professional money. Anyway, here’s my take on it.
Basically we have an “ascending triangle” pattern setting up here on weekly and monthly timeframes. There’s a test rally for market participation, a re-test, and a market cap-off point area between 980-990. You also have a series of Higher lows. This is a nice looking set-up for the market to move higher. Anyone who has seen my videos on trading triangles will recognize all of these same signs I’m preaching now and can see the end results of these actions. LIVE! Right here on my blog.
We may still be a few weeks away from a nice gold rally but it is near. There are a few concerns though. The volume is average on the weekly and declining on the monthly chart. That’s not good for staying power in the rally. I’d prefer to see the volume increasing a little more. This tells me that although I still believe a rally will happen, I also think it may putter out within weeks of the rally if there isn’t more professional participation. The MACD on the weekly and MONTHLY time frame isn’t showing the strength I’d normally like to see.
So That’s my take on it! I think we’re going to rise and then fall again relatively quickly! Once again, I don’t claim to have a crystal ball or anything and things can and do change or I could just be plain wrong. This is the way I see it. Thanks again for watching!
Ektrdader
www.informedtrades.com/blogs/ektrader/