Yesterday, the spot gold market flashed a major trend change to the upside. Major trend changes do not occur that often and when they do I like to pay close attention to them. The signal came in at $1,331.45, and even though gold is now lower than that point, it is still a valid signal.
With all the Trade Triangles now positive and the fact that we are seeing a pullback today in gold (FOREX:XAUUSDO), this may be an ideal time to get long gold in the ETF SPDR Gold Shares (PACF:GLD), a leveraged ETF, or in futures.
The current pullback on the intraday 15-minute chart puts this market back into a Fibonacci support area which should offer good support. With the long Fourth of July weekend, I do not expect anybody will want to be short this market going in to the weekend. I expect to see some recovery later today from the lows seen this morning.
There are no guarantees in trading, but with all of the Trade Triangles positive on gold, I feel this is a fairly low risk trade on the upside. As always, you should protect your position with money management stops. If you'd like to learn more about money management stops, you can read about them here.
Chart Legend:
1. Start of Fibonacci measurement
2. Top of Fibonacci move
3. 61.2 % Fibonacci gold support at $1,318.80
Next week, should we see gold take out the $1,335 area, it will indicate an acceleration to the upside as this will clearly break over a long-term downtrend line that I have pointed out in earlier reports.
Here's wishing all of our US subscribers and MarketClub members a very happy, safe and joyous Fourth of July. We will see you all back here when trading resumes on Monday.
Have a great weekend everyone and good luck with gold,
Adam Hewison
President, INO.com
Co-Creator, MarketClub
Since when has Adam been touting gold? In many videos over the last two years he has been against trading gold, staying on the sidelines until the triangles and trend agree. If the daily flips to red, I'm sure Adam would advise to get out of the trade at perhaps a small loss. He would not say to hang on, or average down, or buy physical etc if the trend was bearish.
If he wasn't long and bullish, he no doubt would not have given carte blanche to every gold salesman under the sun to post their articles and subscription requests on his site. It reminds me of "Jim Sinclair" insisting that he was totally out of metals and on the sidelines from 1981 until 2000, how convenient, even though he had major partnership stakes in mining outfits.
How many this is the final bottom plaintive bleats have you put on since gold topped out 3 years ago, with all due respect.
The problem is, you've been touting the positives of gold nonstop all the way through a very serious and nasty bear market in said metals complex. Where were you with a bunch of articles warning anyone to get out of for instance mining stocks many of which have utterly collapsed 70-90%. A series of "We could be hitting a bottom, gosh, Obama got reelected, Cyprus, Ukraine..... 100 others oh me oh my!!!" useless platitudes don't cut it.
Instead you have relegated yourself to so many others who try to fit their agenda to a certain worldview with hopes of what a sector "should" be doing and at the same time standing on the sidelines or outright shorting a massive bull market in most equities. Versus letting the market tell you where it's going and trying to profit from it.
IF gold starts taking out some resistance points and volume confirms, let's hope you don't come back and be a "See I told you" guy, hoping for everyone to simply ignore your track record of pumping metals all the way down until a bottom finally sticks.
Anyone can do that, even "Arch Crawford" or "Prechter." Well, maybe not Prechter and other ElliottWavers. They are still short the dow from 4,500.
Please point-out, in major trend of either side, said 61.2 % Fibonacci support are just give some time being opposite side movement of prevailing trend, so we just cant solely rely upon such single tool or single rule. Still, Gold required to cross its major resistance zone around 1345 and 1385.
One more important finding, you must notice "Double Top Formation at $1330, what about this? unless gold succeed to cross over this formation, we may hope for any further rise.
This is just "wait and Watch" period, for present level around a hundred dollar's trading range between of $ 1245 to $ 1345, with a near support of $1280