The Big Buck

January 30, 2014 - 4:28pm

 by Gary Wagner

Gary S. Wagner - Executive Producer

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Gold Forecast: Proper Action

Gold stop was hit today. Long @ 1268 out at 1245 - $23.00
No open trades

Gold Market Forecast

Today’s downside move of $25 in gold definitively broke back below the long-standing resistance line we have identified. Whether we site strong equities markets, or a strong US dollar, it is most likely a combination of the two which fueled this downside activity. Most importantly on a technical basis it is the fact that we have broken back below are long-standing resistance line which dampers any technical evidence that we will witness higher pricing in gold short-term. However a case can be made for looking for a cycle low in gold in the month of February.
 
Analysis of gold’s pricing over the last three years reveals that we have seen a cycle low in gold for two of those three years. We will look at this data in detail on today’s show. What we uncover is the fact that between 2010 and 2013 cycle lows in gold prices occurred at the end of January or beginning of February in those three years. The only year we did not see his cycle low occur at the beginning of the year was 2013. It was during this year that we witnessed gold plunge and give up roughly 28% of its value. Inasmuch it is as it is possible to see lower pricing over the next month or so, we will remain vigilant to look for indications of the cycle low as we move into the month of February.

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