December Gold – right on target!
December Gold –Right on target! – In the last issue, I talked about Gold reaching the descending reaction line target objective on or before the October 13 projected reversal swing date. It did! December Gold traded to a high of $1,072.00 on the 13th, but closed well below the high at $1, 064.70. However, it was on the following day—the “trail day”—that the selling kicked in and confirmed the reversal pattern. Gold remained under pressure and closed sharply lower. I look for more selling to pressure in the market over the next few days with the first level of support at $1,040.50, followed by $1,025.00.
December Gold
December Gold
December Gold –The surging Gold market paused with the last two day’s entire trading ranges staying inside last Thursday’s trading range. The market is overdone, but the upward trend remains intact. Gold could encounter one more push to the sloping reaction target objective of $1.070.00, the October 14th reversal swing day.
December Gold
December Silver – overdone?
December Silver – Over $1.90 in four days! The rally was triggered on October 10th off the bullish TR swing pattern that had formed on the 20-day SMA. Silver reached a new high on Thursday—trading above the $17.69 high posted on September 17—one day before the projected reversal swing day. A new high on the reversal swing day could portend a profit-taking correction.
December Silver
December Gold
December Gold –The price of gold struck an all-time high at 1,038.65 dollars per ounce, as the dollar fell on a rumored plan to stop using the U.S dollar for oil trading.
I made the recommendation to buy Gold at $1,004.50 or lower. I had the right idea, but I was a little optimistic about getting a slight pullback before trading higher. Instead, Gold open steady and never looked back, as it left us in the dust and took off and surged over $28.00 higher before taking a breather. I was left with nothing but an unfilled order in hand. What now? The ascending centerline intersects the descending reaction line at $1,060.00 with the next reversal swing day falling on October 8th. This suggests more upside potential for the Gold over the next couple of days.
December Gold
Dec Silver reaches 1st target!
10/6/09 - 9:40 am - MST - Silver has surged 85 cent higher and reached the junction where the ascending centerline crosses the newly formed descending parallel resction line. This will typically act as a resistance level where a market will consolidate or form a new swing pattern. This is a good target level to close the long position (long from 16.65) at 17.39.
December Silver
December Gold
10/5/09 - December Gold –A weaker dollar boosted Gold futures and pushed them up to the descending parallel resistance line, where the short position was closed at $1,011.50. The long-term bullish trend overcame the short-term swing pattern sell signal and quickly ended the correction, after finding support at the 20-day SMA. Gold continues to get support from investors on concerns of impending inflation. Tiger Management Chairman, Julian Robertson, says that if China and Japan stop buying our debt, inflation could hit 20 percent. "It's almost Armageddon if the Japanese and Chinese don't buy,” Robertson told CNBC. "I don't know where we could get the money. I think we've let ourselves get in a terrible situation."
Investment guru, Jim Rogers, has been on the inflation bandwagon for some time and says the United States risks hyperinflation, thanks to the government’s massive fiscal and monetary stimulus. That stimulus also will continue to hurt the dollar, he told CNBC. "There's no question the U.S. is vulnerable to hyperinflation down the road or certainly the inflation we saw in the 1970s, I would expect that to come back in the foreseeable future, certainly in the next few years," he said.
The pattern is bullish and Monday’s price action pushed the Gold right up against the descending parallel resistance line. I would like to see a pullback to the 20-day SMA for an entry. Buy Gold at $1,004.50 or lower, with a stop loss at $986.00.
December Gold
December Silver
10/5/09 - December Silver –Silver has formed a bullish TR swing pattern near the lower ascending parallel line of support. This pattern came at the end of the $.1.90 correction and possible continuation pattern. The two-day pullback ended inside the 60% buy window on Friday and rebounded quickly and decisively on Monday. The new swing pattern portends a rally into the October 9th reversal swing date. Buy December Silver at 16.65 stop, with a stop loss at 15.90. This trade can also be done with the NYLIF mini Silver.
December Silver
December Gold
10/2/09 - December Gold –Gold traded to a high of $1,011.10, taking out the previous high of $1,010.80 on a projected reversal swing day. The new high pushed Gold briefly inside the 60% sell window, before selling pressure took the market lower. This price action has set up a potential TR swing pattern. This pattern typically appears at significant highs and lows and could be followed by a significant selling opportunity. A trade below $992.70 will confirm the TR swing pattern and trigger a sell signal. Sell Gold at $992.30 stop, with a stop loss at $1,011.50.
December Silver
10/2/09 - December Silver –Long from 16.47 – position closed @ 16.65 – Silver fell short of reaching the 60% sell window before momentum began to fade, so I elected to exit the long position for a nice gain. Silver appears to be forming a bearish TR swing pattern that could set up a significant sell-off in the market. I will stand aside to wait for a new pattern confirmation before taking any position.
December Silver
TR swing pattern setting up sell for Gold
10/01/09 - 8:28 am MST - December Gold traded above the previous day's high of $1,010.80, taking it out by 30 cents--reaching a high of $1,011.10--before reversing and trading lower. The $1,011.10 high reached inside the 60% sell window, setting up an early entry sell signal. The price action over the past few weeks has formed a potential TR swing pattern that could signal a major trend shift, if confirmed by a trade below $992.70.
December Gold
RT Swing Trader Software
