Current Market Rates Per Ounce
February 03, 2012 3:19:34 PM PST
| USD $ | CAD $ | |
| Gold (AU): | 1,724.90 | 1,709.10 |
| Silver (AG): | 33.56 | 33.26 |
| Platinum (PT): | 1,615.63 | 1,600.83 |
| Palladium (PD): | 701.60 | 695.17 |
| USD-CAD Exchange Rate: | 0.991 | |
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Gold Trading in a Congestion Zone
By Chris Vermeulen
March 28, 2010
Last week the general market continued to grind its way higher for yet another week. Overall I feel the market is very much over-bought. We all know the market can stay in extreme over-bought levels for extended periods of time making it very difficult to pick tops. This is the reason I do not try to pick tops but rather wait for a top to form before putting my money to work. While a bottom can be made in one day, tops tend to take days and some times months to complete.
A couple of things really stood out to me when looking back on last week's price action.
- Gold (GLD Fund) was only up 0.29% for the week while the gold mining stocks (GDX Fund) was down over 3.5%. This strong divergence really has me concerned about the price of gold in the near term. Gold stocks generally lead gold and if they are down 10x more than gold last week we better watch out.
- The US dollar broke out and started to rally posting a gain of 1% for the week. It is definitely weird to see gold move higher when the US dollar is rising.
Gold has been trading sideways/down since December. I see this large five-month pull-back as bull flag and expect to see much higher prices for gold long term. But I don't count my chickens before they hatch so I continue to focus on the daily and intraday chart patterns for low risk trading opportunities.
Friday we saw gold close very strong for the day. It looks very much like a reversal candle but with the price trading under the mini head-and-shoulders neck line and with the US dollar in rally mode again I don't think the stars are aligned enough for me to put money to work just yet.
Gold is currently trading in a major congestion zone. Until there is a breakout of this zone I think setups will not be very accurate.
Conclusion:
In short, the stock market is over bought and about to roll over. I do understand that this grind higher could last another week or so which is why I am focusing on short/quick intraday movements like Friday's SP500 Intraday Low Risk Setup, and not buying ETF funds to hold for a few weeks. Most of you know I do not chase prices higher simply because down side risk increased when buying into a over extended rally. I feel gold and silver will move together and at this time I don't like their charts for trading. With any luck we could get some setups this week but not counting anything just yet.
If you would like to receive my real-time low-risk ETF trading signals please check out my website: www.TheGoldAndOilGuy.com.
TheGoldAndOilGuy.com is owned and
run by me (Chris Vermeulen), an individual gold trading specialist.
After sharing my gold analysis with friends, traders and financial
advisors, I decided to make TheGoldAndOilGuy.com my full time job in
2003. This service was designed from the ground up to help individual
traders who want to focus on consistent, accurate and profitable trades.
Over the past ten years my strategy has been refined to one golden trading
vehicle which has an almost 100% accuracy. The GLD (DGP and DZZ) gold
exchange traded funds are now the most accurate trading vehicle I have
seen, so it's my vehicle of choice. Members of TheGoldAndOilGuy.com not
only get to trade my signals, but see my live trading charts and ask me
all the questions they wish. My goal is for all of us to make money
and have fun in life.Home | Products and Prices | Buying | Selling | FAQ | Articles | Forms | Top
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