This Week Could Indicate a Key Reversal in Gold

May 24, 2019 - 8:36pm

 by Gary Wagner

Gary S. Wagner - Executive Producer

 

 

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Gold Forecast: Proper Action

We are currently flat with no active trades. Although Thursday's dynamic $10 gain certainly changes are outlook from bearish to bullish. Today's video will define the parameters we are currently looking at.

Gold Market Forecast

Although today's range in gold pricing was very narrow, it did close near the highs of yesterday's $10 gain. This indicates a solid potential that the sending triangle pattern we identified earlier this week, Thursdays moved to increase the probability of a break to the downside.

Based on how the market opens up on Sunday which of course will be light in volume, it will not be until Tuesday when the futures markets return that we will get a clear indication of where gold might be headed. Today's video will detail the possible action we will see next week. We will look for a break above the .382% Fibonacci retracement level. If it does it will be a solid indicator that gold will break above the current long-standing resistance trendline which is sitting i at $1392.

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

Big Business Fueling Bitcoin’s Boom

Bitcoin has recently has been adopted by retailers such as Whole Foods as well as major corporations most notably AT&T, who announced this Thursday that they will now accept payments in Bitcoin. Kevin McDorman, vice president of AT&T Communications’ Finance Business Operations spoke on this matter stating, “We’re always looking for ways to improve and expand our services… We have customers who use cryptocurrency, and we are happy we can offer them a way to pay their bills with the method they prefer.”

Transaction volume is finally catching up to the big boys of banking and finance. With Bitcoin’s daily transaction volume averaging $6.3 billion it is still far away from MasterCard’s $16.2 billion or visa’s $30.3 billion in daily volume. However, it already far exceeds American Express at $3.2 billion and Square’s $.2 billion in daily transactions.

This most recent recognition by mainstream players in big business accepting the crypto currency, I believe this will be the added fuel needed to take the current rally above resistance at $8500. As we spoke about earlier in the week and confirmed by the gains witnessed today in Bitcoin’s Price along with volume, I believe will form a gap in the futures markets primarily in the CME (BTC #F).

Traders looking for an entry point in BTC #F should strongly consider getting in before today’s (Friday’s) close. We could easily see a gap up similar to the 25% increase that occurred two weeks ago. If this scenario unfolds as such my belief is that pricing will take out resistance at $8500 and could go as high as $9795 a level of historical Support/Resistance as well as the 78% Fibonacci retracement level from the Highs reached in July 2018 down to the all-time lows (since futures contracts were offered) occurring in December 2018 just above 3000.

So anyone considering investing in Bitcoin should take a serious look at entering a long position before today’s close. This is due to the fact that Bitcoin futures will close later today, and then reopen on Tuesday. The Cash market will be open over the 3 day weekend and the futures contract will have to adjust to the weekends price change on Tuesday