GOLD SETTLE $ 1759.70
TECHNICAL
Altogether as many as five times, gold closed above the 1772 that started from the all-time high. That fact should technically keep this angle on weekly closing base. Technically it will take a weekly close below 1745 to break this angle pretty surely downwards, considering the lost motion. Target in that case would be the 1725 area .
For THE week, narrowly beneath the 1751 there is another important weekly time and price magnet that is formed by the strong support at 1740. The 1740 should be expected for week if a daily close below 1748 is produced. But it’s also possible that just a short intraday dip to the 1740 will happen –
In summary at 1751 the area of the strongest weekly and monthly supports begins. At 1751 and at 1740 strong turns or the end of the countertrend respectively are expected to happen for the week.
FUNDAMENTAL
We are literally witnessing a war between the physical buyers (Eastern central banks), and the paper manipulators (commercials or bullion banks), and that is why there is such a fierce battle being waged in gold between $1,735 and $1,800. The commercials are massively short gold at the moment, and each time they try attempt to drive the price of gold lower, there is a solid wall of physical buying they are running into.
This is one of those moments in the gold market where there is a distinct possibility that we will see a commercial signal failure. A commercial signal failure is an extremely rare event, but we could well be setting up for just such an occurrence right now.
This is a battle between the sellers of paper-gold and the buyers of physical gold. We know the paper-sellers are there because Comex open interest has exploded over the past several weeks.
TECHNICAL
Altogether as many as five times, gold closed above the 1772 that started from the all-time high. That fact should technically keep this angle on weekly closing base. Technically it will take a weekly close below 1745 to break this angle pretty surely downwards, considering the lost motion. Target in that case would be the 1725 area .
For THE week, narrowly beneath the 1751 there is another important weekly time and price magnet that is formed by the strong support at 1740. The 1740 should be expected for week if a daily close below 1748 is produced. But it’s also possible that just a short intraday dip to the 1740 will happen –
In summary at 1751 the area of the strongest weekly and monthly supports begins. At 1751 and at 1740 strong turns or the end of the countertrend respectively are expected to happen for the week.
FUNDAMENTAL
We are literally witnessing a war between the physical buyers (Eastern central banks), and the paper manipulators (commercials or bullion banks), and that is why there is such a fierce battle being waged in gold between $1,735 and $1,800. The commercials are massively short gold at the moment, and each time they try attempt to drive the price of gold lower, there is a solid wall of physical buying they are running into.
This is one of those moments in the gold market where there is a distinct possibility that we will see a commercial signal failure. A commercial signal failure is an extremely rare event, but we could well be setting up for just such an occurrence right now.
This is a battle between the sellers of paper-gold and the buyers of physical gold. We know the paper-sellers are there because Comex open interest has exploded over the past several weeks.
The shorts will need to buy back at whatever price they can to limit their losses. It is this panic buying that will launch the precious metals like a rocket when $1800 and $35 are finally hurdled. We have seen battles like this one many times over the past years. Some of these battles have been fought even more fiercely than the current one, which means it could take a while longer to get the breakouts above $1800 and $35.
But TRADERS/INVESTOR have to remember that in the end, the physical buyers always win as evidenced by the fact that gold has risen 11 years in a row, and this year looks like it will be number 12. The reason of course is that there is far more paper-gold in existence than actual physical gold, which means only one thing: We could soon be seeing a massive short squeeze in gold and silver........BE READY A BLAST IN PRICE
RECOMMENDATION : BUY ON DIP
TRADE LEVEL
RESISTENCE #2................................ $ 1784
RESISTENCE #1................................ $ 1772
PIVOT................................................ $ 1761
SUPPORT #1..................................... $ 1749
SUPPORT #2..................................... $ 1740
Happy Trading
Rahul Kumar
Gold Specialist
Call me for yr position : +91 895-8173-410
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