Chinese Bite Back, As Both Sides Dig In

May 23, 2019 - 7:35pm

 by Gary Wagner

Gary S. Wagner - Executive Producer

P.S. Want to get my Gold Forecast that's returned 1600% since 2010 for free?  Click Here

Members section is now available for free, because 14 days has past since its publication.

Gold Forecast: Proper Action

Although we are flat with no active trades today's strong upside move certainly is a game changer in terms of market sentiment both in gold and equities. As we spoke about on the show the real question is whether these concerns will remain or grow for an extended period of time, or be a flash in the pan where that concern lessons in a short time. If in fact we are seeing extended concern about the current trade war this would certainly move gold to higher pricing and what we want to watch or look for is a break above current resistance.

Gold Market Forecast

Today's video report will detail our current thoughts on the shift in market sentiment today and how long that might last. Because that is the key to whether or not we see an extended rally in gold and a correction in US equities. Let's see if we get a continued reaction on Friday which I believe we will, will indicater byi  breaking above  the current resistance.That would trigger a by signal for gold, and a sell signal for the S&P 500.

Sentiment Indicator:
Gold -> Bullish
Silver -> Neutral
S&P 500 -> Bearish
Bitcoin -> Bullish
Bitcoin fundamentals by Joseph M. Wagner II:

 Trading the Gaps

One noticeable pattern in recent activity of the CME’s five coin Bitcoin futures contract (BTC #F) is noticeable gaps between the closing price on Friday and the opening price on Monday. This of course is most notable during the last two weeks of trading as well as June and July of last year. This is caused by the fact that Bitcoin is traded 24 hours a day seven days a week, while the futures markets are closed during weekends.

What we can gleam from these gaps whether they be the recent gaps on the way up to $8500, or last summer’s gaps on the way down to $6000, is that these gaps occur at times of high volatility and are usually followed by a spike in volume, which makes these gaps more likely to become a break away gap like the one witnessed two weeks ago on May 12th, rather than an exhaustion gap were there usually is no spike in volume like the one witnessed last week on May 17th . Although it is only Thursday BTC #F seem to be gearing up for another weekend gap. I believe this gap will be witnessed again and will either take pricing closer to its support level at $6500 or testing and possibly trading above resistance at $8500.

Looking at recent activity I believe that if the gap is once again formed it will continue in a bullish direction and could break through resistance creating a new high for the year. However if no gap is formed it would signal that volatility has lessened and prices are consolidating between $7500 and $8500. With one more trading day in the week we will have to see how it acts on Friday in order to make a better forecast for traders wanting to take advantage of this interesting market behavior.