Possible Bounce Points for Gold
April 13th, 2013Warning: This is not a recommendation to buy, sell or hold any financial instrument.
tl;dr: Possible bounce points to watch on gold: ~$1500, ~$1300 and ~$1154
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Gold has been caught in a sideways grind since 2011.
That ended today with a big red candle, breaking it down and out of the range.
The media has set the tone that shorts have easy sailing ahead. This is complimented well by the Squid’s recent short call on gold:
Investment bank Goldman Sachs Group Inc. said Wednesday that gold’s prospects for the year have eroded, recommending investors close out long positions and initiate bearish bets, or shorts.
The path of least resistance has been short for months.
All of that said, shorts should consider paring it down, closing it out or reversing it long (short term) into $1450.
Look at the weekly chart. Just ahead, you’ve got nearly overlapping 200 EMA and the 38.2% Fib retracement. Do you really think the Squid’s technicians didn’t see these before the press release was issued, and that they will short into these? I doubt it.
Spot Gold, Weekly Interval
If it decisively takes out the 38.2%, the 50% (~$1300) is near a January 2011 pivot. The 61.8% (~$1154) sits on a July 2010 pivot.
Comex will be cleaned out in two weeks, the ETF GLD bonfire is already started and I’m going to fire up the shaker table tomorrow to sift some REAL gold out of the sand pile.
The wheels on the bus are falling off.
“…recommending investors close out long positions and initiate bearish bets, or shorts.”
IOW we need some help grinding down the price of gold and silver to keep it from being onvious to everyone that we have killed the reserve currency of the entire planet.
This is gonna complicate things.
http://silverdoctors.com/10-of-us-annual-silver-supply-just-vaporized/
Quote
Bingham Canyon Mine is the largest man-made excavation in the world. It has been in production since 1906, and features a pit almost one kilometre deep and 4km wide.
“This is something that we had anticipated,” Bennett told Deseret News.
“We knew the slide was imminent. We had relocated machinery, we had rerouted roads, we had rerouted utilities, we had rerouted buildings.”
End Quote
The slide was on April 10th but awareness of the potential slide was earlier. It would be difficult to hold gold down without silver. File the metals take-down on the 10th & 12th under coincidence? If Au/Ag roll from here, a hat tip to Alf Fields on his $1480 target.