Throwing a Little Cold Water on Gold (sorry)
I see the enthusiasm and I hear the excitement. It’s really great for a change. It even warms me up to hear the happiness. And gold does indeed look terrific for once in a long while. But I am going to throw a little cold water on the current bullishness and remind our loyal cadre of Goldbugs that gold’s recent move will see a reversal shortly.
If you are buying Monday or planning to next week you may want to consider waiting just a little because the daily chart is telling us that this recent rapid climb has posted a 3 standard deviation move from the median line. That is virtually always a sell signal on gold as price typically will not stretch much further before breaking. I am not dissing gold by the way and I am not saying don’t buy it….all I am suggesting is you watch your charts and try to pick a better entry as this move is near exhaustion and price will soon fall back.
Here is the chart. For your sanity…..just note that price has already hit the upper Bollinger at 3 STD Deviations.
Yep.
Trader from Hell again! Ha, I am really starting to like you brother!
“just note that price has already hit the upper Bollinger at 3 STD Deviations.”
Went right through it. But then closed inside.
I have no daily OB warnings yet, even those seem like they should be there.
Volume confirmed the rally so far.
My …”no bottom before summer” looks out the window, and its back to charting the $ for clues. I assume there’s a firefight going on behind closed doors at Eccles and elsewhere. And we’re all caught in the middle of the crossfire.