Tag: Chart Anslysis

Hello MarketClub members everywhere! Despite the rally on Friday, there's been little change to the overall status quo of a broad trading range that I believe the indices are in.

Indices

On Friday the DOW (INDEX:DJI) closed at its best levels in 10 weeks, bringing it back up to the Nov/Dec lows which should act as natural resistance. The Dow is still in a 61.8% Fibonacci close-only retracement mode and should begin to falter around current levels. That's not to say that it can't go a little higher, but I think that it's doubtful that it can sustain higher values.

You can see much of the same picture with the S&P 500 (CME:SP500) as it is back into an area of Fibonacci resistance. I still believe that this index is cranking out a major top which began in August 2014. This week should be an interesting one as I expect to see more two-way trading, the key of course is where it closes Friday. Continue reading "This Is Status Quo Time" →

Hello MarketClub members everywhere! As the month of February rapidly comes to an end in just three trading days, I thought it would be interesting to look at where the markets closed at the end of January, which as you know was a very volatile month.

So here the closing values of the major indices, gold and crude oil on January 29th: Continue reading "If It Walks Like A Duck, Quacks Like A Duck, It's A Duck!" →

Hello MarketClub members everywhere!

Gold

Is this pullback in gold a buying opportunity or a watching opportunity? I think it's the latter, and here are the reasons why.

Gold (FOREX:XAUUSDO) has had a remarkable rally from early December in 2015 to just a couple of weeks ago when the price of gold peaked at $1260 in the spot market. There are two things that I'm looking at in this market; one is for further consolidation and the second is that I believe that a major cyclic low will be occurring in the near future.

Looking at a chart of gold for the past 12 months you can see that gold had low periods in March, July and December. If that same rhythmic pattern holds true, the next low period should be coming up in April. I expect to see gold remain choppy until that time period.

The major reason why I want to pay close attention to gold is that I believe it is in a longer-term bullish cycle. One area to pay close attention to is the 50 support line on the RSI indicator. You also want to pay particular attention to the monthly RSI, which still remains below the 50 line indicating that it's not fully into a strong upward momentum cycle for gold. I believe that we will see further consolidation below the RSI line before it's broken on the upside. Continue reading "Get Ready For A Buying Opportunity In Gold" →