GOLD SETTLE $ 1604.10 (LAST FRIDAY)
Whereas with the developments of last week, for the entire commodity sector became apparent that with the May lows possibly even the year-lows 2012 were made (CCI – Continuous Commodity Index) in the field of the precious metals certainly not all that glistens is gold.
It’s understood, with the outstanding price advantages of Friday for the time being the gold and silver bugs remain at the helm again – at least in the short term. Above all, if we consider silver in a context with crude oil the short squeezes we could see in both markets on Friday might have been the first indications that also those two important commodities produced their final lows of the whole correction on Thursday.
We gold bugs cannot and must not become bullish before the elliptical resistance $ 1617-20 is clearly overcome on daily basis, i.e. before it is broken upwards on daily closing base.
Thus – considered theoretically – during the whole month gold may rebound downwards from the elliptical resistance again and again. Not before that, the time will allow – always considered merely theoretically – a significant rise.
All things considered I think that the entire first initial impulse since the May lows is not supported by the mass of all the market participants! The whole impulse is unclean, and that involves some threats, especially the threat that the market will fall short of the May lows again!
I consider the success of a significant break out of the elliptical resistance as pretty unlikely. And it will be above all taking into consideration the stock markets that might brutally fall again from Thursday. Gold and silver are technically expected to follow the stocks! The only possible exception would be if last Friday really a mighty new up impulse started. But I rather don’t suppose so because short squeezes very seldom ring in significant changes in trend.
Well, technically we should have to reckon with this: In 3-4 days, at about 1615-1612$, where the elliptical resistance meets the daily downtrend line the next big battle will be carried out. If gold closes above 1627 one day of next week it will probably be out of the woods, because in that case we would have the confirmation that last Friday in deed a new initial impulse started that we could count out very well consecutively.
Though, if gold is soon rejected by its elliptical resistance and the daily downtrend line again, we’ll have the 70% probability of lower lows, and maybe only from there a clean, clearly countable initial up impulse can start.
Happy Trading
Rahul Kumar
Head
Hansraj Stocks and Commodity Consualtant
http://hansrajconsualtant.tk/
Call me : 969-0022-884
Whereas with the developments of last week, for the entire commodity sector became apparent that with the May lows possibly even the year-lows 2012 were made (CCI – Continuous Commodity Index) in the field of the precious metals certainly not all that glistens is gold.
It’s understood, with the outstanding price advantages of Friday for the time being the gold and silver bugs remain at the helm again – at least in the short term. Above all, if we consider silver in a context with crude oil the short squeezes we could see in both markets on Friday might have been the first indications that also those two important commodities produced their final lows of the whole correction on Thursday.
We gold bugs cannot and must not become bullish before the elliptical resistance $ 1617-20 is clearly overcome on daily basis, i.e. before it is broken upwards on daily closing base.
Thus – considered theoretically – during the whole month gold may rebound downwards from the elliptical resistance again and again. Not before that, the time will allow – always considered merely theoretically – a significant rise.
All things considered I think that the entire first initial impulse since the May lows is not supported by the mass of all the market participants! The whole impulse is unclean, and that involves some threats, especially the threat that the market will fall short of the May lows again!
I consider the success of a significant break out of the elliptical resistance as pretty unlikely. And it will be above all taking into consideration the stock markets that might brutally fall again from Thursday. Gold and silver are technically expected to follow the stocks! The only possible exception would be if last Friday really a mighty new up impulse started. But I rather don’t suppose so because short squeezes very seldom ring in significant changes in trend.
Well, technically we should have to reckon with this: In 3-4 days, at about 1615-1612$, where the elliptical resistance meets the daily downtrend line the next big battle will be carried out. If gold closes above 1627 one day of next week it will probably be out of the woods, because in that case we would have the confirmation that last Friday in deed a new initial impulse started that we could count out very well consecutively.
Though, if gold is soon rejected by its elliptical resistance and the daily downtrend line again, we’ll have the 70% probability of lower lows, and maybe only from there a clean, clearly countable initial up impulse can start.
Happy Trading
Rahul Kumar
Head
Hansraj Stocks and Commodity Consualtant
http://hansrajconsualtant.tk/
Call me : 969-0022-884
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