Its Not Time To Get Excited About Gold – Yet
Gold and other precious metals have been moving lately and this, of course, brings out all the gold bugs.
But, taking a step back and looking at the bigger picture, we can see that its not quite yet time to get excited about this particular metal.
There’s no doubt that its time will come again, but, right now, this current move is just about biding time.
To see what we’re talking about, lets take a look at the weekly charts:
Do you see what we’re looking at?
Both the Gold Futures Continuation Chart and the GLD ETF chart display large consolidations. In fact, price is smack bang in the middle. While you can certainly continue to see a pop from here, for a true bull market to occur price needs to break decisively above the upper trend lines – and we’re a long way from that.
Even if price were to start rallying today it will likely still take another week before it can penetrate the resistance levels and start a new bull market. But our suspicion is that we hit the upper end of the range and then start a move lower.
Its just that kind of market right now…
Pending Consolidations In Gold
Photograph provided by canstockphoto.com
Yes, this was another quick one. But, really, when prices are in a range there’s not a lot you can do – unless you buy at the lower end of the range and sell at the upper end (or vice versa.)
When price is in the middle, its a crap-shoot whether you should buy or sell.
PS: don’t forget – if you have questions about the techniques used in this article, a simple 1 hour technical analysis coaching session can get all your questions answered!