The gold market showed strength in the face of rising USD Index. This fact which probably surprised some traders - will be very useful at a later stage of this gold global bull market.
Technically, as the price of gold broke above the short term downtrend line the bottom was confirmed. Gold then spent some time back testing the downward slope line and then headed higher. Once gold managed to exceed the highs of the day (yesterday) a flood of market if touched (MIT) buy orders were all over the place and the price was quickly marked up.
GCM7 Gold June Comex Intraday (120 min) chart
There is literally tons of resistance from here all the way to 700$. This is the intraday wave v and once completed a correction will be needed.
GCM7 June COMEX Gold daily chart
To understand my technical work you must have knowledge of Elliott wave theory. You might want to check this online tutorial. For access you only need to be an Elliott wave international club member. If you can afford then order R. Precter book: How to Forecast Gold and Silver Using the Wave Principle.
7 comments:
Just wondering, what's your rough final target for gold?
Frank
Hi Frank,
Do you mean end of the bull market gold price target? I currently do not have a final target for gold. Step by step we go…
I prefer to look for bottoms for now but occasionally might get bearish on a short term basis.
For the Intraday wave count? From the coming mini correction we can learn more.
Yes for the intraday wave count. We are sitting around $690 in gold now, so you expect another mini-pull back to low $680's before we break $700?
Frank
Low volume day, can't make much out of it.
See also http://goldandsilverstocks.blogspot.com/
more later.
I might be wrong but I think we have just seen a short term bottom and the gold market is again ready to move higher towards 700$ and new highs for the move.
Yes, I kinda agree with you. I was looking around this level too. I know you don't look at GLD, but GLD seem to be supported by 20 and 5 MA now (5 is crossing 20 now). The lowest it go probably try to test 10SMA which has been acting as a good support through out last wave 3.
Frank
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