Gold Update

Today Gold reached a low of 1403.  Right where we expected the target would be.  We have broken a few technicals but that is the point of any low or any high.  The next level of support if this keeps its trend is 1200 at the monthly 75ma.  So is there a good possibility that we would get here? 

We reached our target so what's next?  Well for starters, as the Bulls reach down in their pockets only to find lint.  The sentiments as always has been that we have hit the bottom in Gold.  It is possible, but our indicators do not say over until it crosses up.  So far, todays indicators has pointed down with divergence (always a good sign for anyone looking for a bottom).  But the key here is not to react to quick.  Let the indicator play out. So what if your late, so long as you get in at a better risk opportunity.

Our long-term trend has reached oversold and mid-term which we will use as our main trend is diverging with prices, but still down.  When our indicator turns up, your trade setup would be to use the daily Stoch. then to enter just when its crossing upwards and to make sure as it rises, that the mid-term trend follows in the same direction.  This always never fails.

On an EW pattern basis, we can see a few resemblance of their theory.  First of all the movement from Oct 2012 counts as ABC with 3 subwaves each.  This would be consistent with the 3 wave A formed in Sept 2011 to Jan 2012 and the 3 wave B made from Jan 2012 to Oct 2012.  We are also in an A = C here at the 1400 level. We should wait for indicators to turn up before we call a bottom even if we are most confident.

Gold Wkly:

Silver Wkly: