21st november Gold Trend Analysis

Last nights website update listed resistance in gold at 1725-1736 and the high so far today is 1726. Support was listed at 1705-1714 and the low so far today is 1698.


Currently short from 1767 in GOLD — NEW intra day Stop is 1747


London Gold Fix $1,704.00 -$26.00

With the trade in December gold at November 1st price seen overnight, it is clear that gold and other commodity markets are once again fearful that global debt issues are capable of slowing the world economy. As in many commodity markets, gold is probably concerned that the lack of US leadership on its debt problem is set to join the European situation as a mill stone around the neck of the global economy. With a rising greenback and technical pressures adding to the gold markets troubles early this morning, the bear’s probably feels pretty confident.

Some traders are pointing to a slide below a quasi double low on the charts from last week, as a factor prompting technical stop loss selling early this morning.

While equity markets in Asia and Europe were generally lower during overnight trading, US equity markets are open with substantial losses. The US Dollar is stronger against most of the major’s this morning. Spain elected a center-right coalition in yesterday’s vote with the largest majority in 30 years. France’s credit rating could be negatively impacted by higher borrowing costs for an extended period. The Japanese Trade deficit during October was 273.8 billion Yen, a much larger deficit than expectations. Major US economic numbers to be released this morning include the Chicago Fed’s National Activity Index for October at and October Existing Home Sales came in at 4.97 Million units — pretty much in line with expectations.

IN summary —- the rest of the markets are finally coming over to our side of the expectations —- “liquidity squeeze” and lower prices as a result of the need to raise capital and no market is void from this situation. The MEDIA is “sheep dipping” everyone today with the notion that the USA super committee is not going to reach the cuts they need to inact. We’re pretty sure when the short term cycles we watch bottom this week or early next week —- that there will be some “announcement” of agreement and low and behold —- a big market bounce will come into play. But until then —- they are going to punish the longs.

OPTIONS EXPIRATION is on Wednesday —- and our speculation that the “boyz” were going to take it down in this time period has payed of handsomely with great profits. THEY HAVE EXPOSURE all the way down to 1525-1625 and so far have CUT 1/2 of their losses from 1800 to 1700 —————an additional move to 1600 would put them in great condition. We’re GOING TO BE LOOKING TO REVERSE OUR SHORTS TO LONGS —————- when we see a major support come in on the chart.

Going to the charts

Gold continues to perform as we’ve speculated and has arrived at the 1700 dollar level this morning. The chart shows the clear turn in the market was when the main channel line broke. We’ve been shorting since 1780 and 1767 and since that time, the market has been under hard pressure. Gold is now arriving at one of the support area’s which looks to be the 1680-1690 area for today — where the lower dotted blue downtrend line resides. SUPPORT FOR THE REMAINDER of today is the 1680-1690 area with 1690 being a good candidate for a low today. RESISTANCE is the 1713-1724 area for the remainder of the day.

The panic continues in all markets. From a short term standpoint — a low in gold is due this week — which means that one of the support area’s on the gold chart below should provide a low. The most likely place for a low this week is going to be in the 1670-1680 area —– and if your short — taking “some” profit there is a consideration…..but so is holding some. If the PANIC continues ———- the 1625 area could come into play this week as the OPTION BOYZ are wiping out everyone.



Error: Feed has an error or is not valid

Error: Feed has an error or is not valid

"For a mountaineer, the important things are the effort, the posture and the muscles. The rope that holds him serves no purpose when everything works but it gives him a sense of security. In the same way, all gold does is ensure confidence; it's a safe haven."