Originally published by Chamber of Merchants
I would like to share what I’m looking at with regard to the price of Gold. Note that I am not charting individual stocks since they will rise with the tide.
What is important to consider at this time, is where I believe we’re at in the larger scheme of Gold’s trend.
This post is also in response to some conversations I’ve had where:
- Some traders are becoming nervous. After such a long price decline in Gold they are fearing to lose the funds they have recovered in the last two days.
- Some traders want gold exposure but don’t know how to go about it.
A Merchant’s Insight
- If I were to be nervous, I would be nervous around $1246 where everyone chanted for a decline to $1200. For me, now is the time to do nothing since I am in 100%, the price action is already $1280-$1290 and the bull trend appears to have resumed. So nothing to do because I’m in. I’m not interested in simply recovering the balance I had 3 weeks ago. A Merchant invests in the transaction. The transaction has only started and will be a while yet before an exit level gets reached for my portfolio. You however, must always must do according to your research and best judgement. I’m not an advisor and this site is for educational purposes only.
- Looking for exposure for Gold in the rarest of places to get the maximum returns: Folks, seriously, if Gold rises above $1300 then any solid, well funded, low debt gold producer will be making money and have an appreciation in share price in the next few weeks. There is no need to try find the most unique, undervalued share possible. You can buy large cap or small that is a producer and that will make a considerable return. Think, Evolution Mining Ltd (AX:EVN), St Barbara Ltd (AX:SBM),Northern Star Resources Ltd (AX:NST) in large cap or small cap Emmerson Resources Ltd (AX:ERM), Millennium (AX:MOY), Blackham Resources Ltd (AX:BLK), Ramelius Resources Ltd (AX:RMS), Blackham Resources Ltd (AX:BLK) etc. \
- Do your own research, but don’t try go for something that is too obscure. Too obscure means that the market will not be buying it because they don’t know about it. I would only purchase miners that are noteworthy to the market. The rest are punters: good news up, bad news down. If you want to experience a growth in share price then you need to purchase a company that will react to a higher gold price due to production returns or resource upgrades.That is of course if gold continues on an upward trend, which I believe it will. Once again, your wealth is at risk. At any time I can you can lose all our wealth so consult a financial advisor before considering any transactions in equities.
Gold Charts | 2nd November 2016
Ok so, here we go. Gold has rebounded powerfully off the Fibonacci support with some resistance around $1297, so a pul back and test is expected.
P.S remember, I said this was sneaky, up , down, up , down… Yet we’re not in $1240’s, $1250’s, $1260’s, $1270’s or possibly even $1280’s any more…I believe it’s designed to scare you and me off while the banks take their positions at the lowest average prices.
Gold has also rebounded off the 100 EMA line and simply needs to pop through the 200 on the weekly.
On the daily graph the 100 EMA and 50 EMA are turning and the price of Gold will meet some resistance here. A pop through should result in a return to the $1308-$1350 trading channel.
The Williams Alligator (I love this thing) confirms that there is a clear upward trend.
And the cloud balance (ichimoku) 4 hour chart (more responsive) confirms a breakout into bullish territory. A retest of $1278-$1280 is entirely possible, so if it happens I wouldn’t bat an eyelid.
All of this is in tandem with the U.S Dollar decline, the elections and strengthening cases for a stable Euro and stronger Yen.
That’s it for now.
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