If you remember correctly, I predicted at the start of the year that Gold will fly into the 1500s before retreating to the bearish market. Many times in the past few months did Gold seemed that it would start a new bullish trend, but alas it keeps adjusting itself to the same area.
I was studying some past charts on yellow metal. I noticed something similar to the ongoing chart, albeit on a different time frame, you will see. During the techboom era, you can see that Gold formed a nice rounded bottom before zooming up. The price was tagging the (monthly) EMA 12 with a rounded bottom all along before spiking sharply higher into the next bull run.
Look the weekly chart below:
I propose that the EMA 12 tagging will go on for the next few weeks. The breakout could be confirmed when the price crosses $1350, and then to ~ $1550. I will be happy to sit out this churn and chop before that.A double bottoms is in place. If you take a position now (aggressive investor!), have your stop below that W low.
While the decline this month has been steep, market held to the support (15675) last week. We could see a rally VST next week. I would not be a buyer of the rally till that ~ $DJI 16100 level (which is 61.8% of the decline from the top) is cleared. The 15675 level (= ~ SPX 1772) may be used as support/ resistance with stops by swing traders. I reckon swing traders dont need to trade/ open new positions between 15675 and 16100. Hold on to your trades between that level. While traders can use the same range to buy the low and sell the high of this range.
Wih such a clean support/ resistance levels, what is the need for indicators?