" /> GOLD: Time for Pullback/Consolidation? | Gold Silver Reports
Monday, October 24th, 2016 10:37 AM
Breaking News

Home / Analysis / GOLD: Time for Pullback/Consolidation?

GOLD: Time for Pullback/Consolidation?

GOLD: Time for Pullback/Consolidation?

Gold Silver Report → Since the December lows, $GOLD has moved up +20%, and the advance this month has been nearly vertical (as in parabolic). At this point there are some signs that price needs to consolidate or pull back.

#Looking at the last three year’s price pattern, we can see it has been moving more or less in a slightly declining trend channel, but this week price broke above that channel, indicating that it is possible that the medium–term trend may be shifting from falling to rising. However, the technical expectation after a breakout is for price to pull back toward the point of breakout. If a full retest of the breakout point takes place, 1200 would be the downside target.

#The red and green arrows on the PMO panel show us the existence of a fairly regular cyclical pattern, and it appears that another cycle top is due.

#Sprott Physical Gold Trust (PHYS), a closed-end fund that owns physical gold, is selling at tiny discount, showing that sentiment may be shifting to positive. This would be an encouraging sign for the bulls. We think of sentiment indicators as being contrarian, but they are only contrarian when they hit extremes. Otherwise they should reflect realistic investor expectations. For example, if price is trending up, investor outlook should be modestly positive, reflecting the obvious.

#Another sign that the rally may take a break is the high PMO reading—it is the highest reading since the 2011 price top.

GOLD: Time for Pullback/Consolidation? 1*CONCLUSION: The recent price breakout makes me think that the long price decline for gold may have ended; however, gold is very overbought, and technically speaking, we should expect a “pause to refresh.” Because of the breakout, my expectation is that price will not decline to where it challenges the December lows. Rather I am looking for a pullback and consolidation above the recently penetrated declining tops line. → Neal Bhai Reports

About Anil Yadav

Check Also

8830 to be Key Resistance for Nifty – TECHNICAL ANALYSIS

Neal Bhai Reports — 8830 to be Key Resistance for Nifty – TECHNICAL ANALYSIS — …

  • एमसीएक्स पर कच्चा तेल 2.24 फीसदी की मजबूती के साथ 2050 रुपये के ऊपर दिख रहा है।

  • नैचुरल गैस 1.27 फीसदी गिरकर 132 रुपये के आसपास कारोबार कर रहा है।

  • सोना 2.20 फीसदी गिरकर 28740 रुपये के आसपास कारोबार कर रहा है। वहीं चांदी 2.67 फीसदी गिरकर 36970 रुपये के करीब कारेबार कर रही है। वहीं लेड 0.44 फीसदी की बढ़त के साथ 126 रुपये के आसपास कारोबार कर रहा है।

  • एग्री कमोडिटीज की बात करें तो एनसीडीईएक्स पर जीरा का मार्च वायदा 3.69 फीसदी बढ़कर 15020 रुपये के आसपास कारोबार कर रहा है। वहीं सरसों का अप्रैल वायदा 0.86 फीसदी बढ़कर 4010 रुपये के आसपास दिख रहा है।

We Make Ideas


Our site is objectively in letter and spirit, based on pure Technical Analysis. All other content(s), viz., International News, Indian Business News, Investment Psychology, Cartoons, Caricatures, etc are all to give additional ambiance and make the reader more enlightening. As the markets are super dynamic by very nature, you are assumed to be exercising discretion and constraint as per your emotional, financial and other resources. This blog will never ever create rumors or have any intention for bad propaganda. We report rumors and hear-say but never create the same. This is for your information and assessment. For more information please read our Risk Disclaimer and Terms of Use.

Technically Yours,

Team GoldSilverReports.com, New Delhi, INDIA