Gold Closes over $1680, Sets Up Bullish Breakout
I’ll make this brief.Â If gold closes above $1678.50 tomorrow then that is a bullish 2-bar reversal on the weekly chart which cannot be ignored.Â Considering how hard this level is being contested currently by the Exchange Stabilization Fund and others I will say with confidence that this latest downdraft — nearly wholly manufactured by the ESF in my opinion — is over and the bull market in Gold will be back on.
This would be the first two week uptrend since the peak at $1800 after the QEIII announcement.Â Moreover, it will be a classic 2 bar reversal with the weekly close above the previous week’s high.Â I would feel more comfortable making the breakout call with a close above $1700 but with option pain on GLD being $162 this month and options expiry tomorrow, that probability is low.Â GLD closed today at $162.65.Â I fully expect an attempt to bring it down to $161.99 tomorrow.
This has been an exceptionally low volatility week so far.Â There is a strong possibility of a big move of some form tomorrow up or down because of it.Â But at this point the Bundesbank has done the dirty work to give gold bulls a little more spring in their step as no one who is a serious watcher of these markets believes for a second that repatriating 15% of Germany’s gold reserves is nothing more than political appeasement to the libertarians living in Germany who are clamoring for a return to a gold-backed currency.
Currency Articles - Dec 2, 2015 11:35 - 0 Comments
More In Currency Articles
- GBP Rate Higher As Retail Sales Outperform Then Loses Ground
- Unemployment Level Suggests UK Is Ready For Rate Hike But Speculation Still Says No
Gold and Oil News - Feb 4, 2016 2:47 - 0 Comments
More In Gold and Oil News
- Can The EIA Forecast Save Natural Gas Prices?
- Run For Cover as Oil Weakness Puts Strain On The US Dollar
Shares and Markets - Dec 7, 2015 13:59 - 0 Comments
More In Shares and Markets
- US Markets: Figures Beat Expectations and Dollar Continues Astounding Run Higher
- WANdisco Share Price When Big Data is Booming