Except For Crude The Week Ends On A Whimper | The Gold Forecast

Except For Crude The Week Ends On A Whimper

April 8, 2016 - 5:13pm

 by Gary Wagner

Gary S. Wagner - Executive Producer

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Gold Forecast: Proper Action

This morning we sent out a special trade alert recommending that our subscribers initiate a long position in gold. Traders taking that call got in at 1240 per ounce.

Maintain your current long position in gold at 1240.

Maintain your current protective stop below 1222.

 

Gold Market Forecast

During this most recent correction, gold prices that had traded to an intraday high of approximately 1280 then fell to a low of 1206.

Our initial target for the conclusion of that correction was between 1195 and 1205.

Although our first attempt at positioning ourselves from the long side was stifled when the market came down to hit a double bottom at 1206, recent price action has given us solid technical indicators that the bottom at 1206 should be the conclusion to our former correction.

Over this last week we identified a compression triangle in which we had a series of lower highs and higher lows.

It was a break above the standing resistance of that compression triangle that triggered our buy signal this morning.

Trending Markets: Proper Action

We are currently flat with no active trades in trending markets.

Trending Markets Forecast

Over the last two weeks we have noticed that for the first time in 2016 there has been a decoupling between crude oil and US equities.

Although we closed higher on the day, US equities lost approximately a percent and a half on the week.

The real question traders must ask themselves is whether we are simply witnessing a consolidation within the market before moving to higher prices in an attempt to take out the record highs, or if what we were witnessing has been a potential top in the market.

I believe we will get some key answers to these questions at the beginning of next week.

Sentiment Indicator: