Hurry Up And Wait. | The Gold Forecast

Hurry Up And Wait.

October 6, 2014 - 3:22pm

 by Gary Wagner

Gary S. Wagner - Executive Producer

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Gold Forecast: Proper Action

Over the weekend we were short gold at 1221. We had also moved our protective buy stop down to just above 1205 (1206). This morning our stop was effectively hit taking us out with a profit.

Short gold at 1221, we covered our position at 1206, taking a profit of $15. This amounts to a $1500 profit per contract. We also issued an aggressive buy signal.

We went long gold at 1208 and placed our protective stop at 1195.

Gold Market Forecast

Inasmuch as the precious metals have been closely moving in an inverse direction to the dollar, todays dramatic downside pressure in the greenback has boosted precious metals to substantially higher pricing.

More importantly, our initial target for this latest correction was approximately 1180. In overseas trading Monday morning in Australia and Hong Kong we saw gold prices trading flat to a few dollars lower. As weakness began to show in the U.S. dollar we saw a dramatic rise in both gold and silver.

It is our current take that from the data available this most recent rally is the bounce we had been anticipating. However, I believe that this rally, at least based on the technical evidence, is simply a counter trend to the current bearish trend, which I believe is still intact.

We would need to see an effective close above 1240, the most recent low, before we could view this current rally in any other way. Today's video will detail the specific areas we believe that this current rally could move to as well as define and elaborate on our aggressive buy signal issued this morning.

Sentiment Indicator: