Sunday, November 16, 2014

My Gold Trading Strategy As At November 16, 2014

Gold has had an interesting week, a couple days of consolidation and then a sharp move to the upside where it was stopped by pivot resistance

On this first  chart is the Center of Gravity indicator and also the Semaphore indicator. You will see that the Semaphore Indicator is not yet indicating that the bottom has been reached. Instead it is showing that a further decline may occur. While these indicators are not always reliable, it is interesting that they are showing that the upward move has hit an area of resistance and may fall back

The second chart shows the weekly pivot, although price tried to crass the pivot each day, it was not until Friday that it finally marched past the weekly pivot.

This is a weekly chart and shows a Fibonacci Pattern that indicates an end to the down trend. These indicators can reprint and also are not reliable in all cases. However, the indicator is suggesting a trend change.

This next chart is a 4 hour chart showing the weekly pivot and a support level below and a resistance level above. For several days price was straddling the pivot and then Friday price dropped to the first support and bounced up through the pivot to the first resistance area where it was stopped.. I see a wick at the top of the last candle which may indicate a coming weakness when the markets re open.

This last chart shows daily bars and the Ichimoku Cloud, you will notice that the cloud id quite thick indicating that any move north is going to meet with considerable resistance.

Here are some discussions regarding the Gold market. From these it is hard to get an idea as to which way prices may move in future.

Russia, because of economic conditions and sanctions is being forced to buy production from its gold mines and you will see in the article following that there are two sides to the story

Putin Is Hoarding Gold To Prepare For Economic War - Business Insider
Sat, 15 Nov 2014 16:58:26 GMT
Russia's central bank added to its reserves of bullion in the third quarter, according to the latest report from the World Gold Council. Russia has taken advantage of l ...
Read more ...

Iran has gold deposits and undoubtedly wants to increase its holding of gold bullion based on the apparent approaching economic crisis.

Iran launches Middle East's 'biggest' gold plant, plans to double production - RT
Sat, 15 Nov 2014 18:08:15 GMT
Iran has opened a new gold processing plant, reportedly the biggest in the Middle East, hoping to double its production of precious metals. Using a unique technology, Teh ...
Read more ...

These next articles give a varied opinion as to what may be happening, one says there is an up move coming and the other says there is a huge supply. It is impossible to forecast the movement of Gold, many pundits have tried and made mistakes, we will have to see what the collective market place shows us as days pass

PRECIOUS-Gold soars on short-covering, new fund buying - Reuters
Fri, 14 Nov 2014 21:58:22 GMT
Resource InvestorPRECIOUS-Gold soars on short-covering, new fund buyingReutersNEW YORK/LONDON, Nov 14 (Reuters) - Gold surged 2.5 percent on Friday to just shy of $1,200 an ounce as short-covering, fund buying and a sudden weakening of the dollar off ...
Read more ...

Gold Prices to Drop on Dollar Strength and Likely Lower Asian Demand - International Business Times UK
Sat, 15 Nov 2014 10:27:17 GMT
UKGold Prices to Drop on Dollar Strength and Likely Lower Asian DemandInternational Business Times UKGold prices are set to drop next week with the yellow metal expected to continue battling a stronger US dollar, buoyed b ...
Read more ...

Have a great week ahead.!!

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